Solana and Avalanche Make Strong Comeback in Crypto Market
Recently, the smart contract platform tokens Solana (SOL) and Avalanche (AVAX) have been narrowing the gap with Ethereum (ETH), the leading smart contract platform in terms of market valuation. Over the past month, Solana has experienced a remarkable 42% surge, while Avalanche has soared by a staggering 104%.
A Bounce Back from Decline
Following the collapse of the Terra blockchain and the FTX failure, SOL and AVAX suffered significant declines against the U.S. dollar. These cryptocurrencies, once ranked among the top ten, were briefly ousted from their elite status.
However, they have since reclaimed their positions among the top ten leading tokens. Currently, SOL is in fifth place, having overtaken XRP, and AVAX is in ninth place, excluding Lido's staked ether (STETH) from the count.
Impressive Growth in 2023
Since the beginning of 2023, both SOL and AVAX have registered impressive triple-digit growth. Solana has escalated by 734% since January 1, 2023, while Avalanche has increased by 306% year-to-date, with 104% of this growth occurring in the last month alone.
Narrowing the Gap with Ethereum
Solana is now the closest contender to Ethereum, needing an additional $4.04 billion to surpass BNB, the fourth-largest crypto asset. However, Solana's market capitalization remains $227.6 billion behind Ethereum's. At present, SOL is trading 68.20% below its all-time high of $259 per unit, which it reached on November 6, 2021.
Similarly, AVAX is 69.6% below its peak price of $144, recorded on November 21, 2021. Currently, at 2:34 p.m. (EST), SOL is priced at $82.59, up 13.1% in the last 24 hours, while AVAX is trading at $43.96, reflecting a more than 9% increase in the same period.
Among the leading smart contract platform tokens by market capitalization, SOL and AVAX hold the third and fifth positions, respectively. Over the past week, these two cryptocurrencies have outperformed all others within the top ten smart contract platform coins.
A Dynamic Crypto Market
The notable resurgence of Solana and Avalanche underscores the dynamic nature of the cryptocurrency market. Despite past setbacks, both SOL and AVAX have demonstrated significant growth, challenging the dominance of established players like BNB, ADA, and XRP.
What are your thoughts on Solana and Avalanche and their market performances? Share your opinions in the comments section below.
Frequently Asked Questions
What tax is gold subject in an IRA
The fair value of gold sold to determines the price at which tax is due. If you buy gold, there are no taxes. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
Loans can be secured with gold. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. It's not guaranteed that the lender will do it. They may hold on to it. They might decide that they want to resell it. Either way, you lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It's better to keep it alone.
How is gold taxed by Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
These rules vary from one state to another. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York offers a waiting period of up to 70 1/2 years. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What precious metals do you have that you can invest in for your retirement?
Silver and gold are two of the most valuable precious metals. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It's an ideal choice for those who prefer to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's durable and resists corrosion, just like gold and silver. It's however much more costly than any of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used as a jewelry material. It is relatively affordable when compared to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Can I buy Gold with my Self-Directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. They allow you to speculate on future prices without owning the metal itself. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing in gold vs. investing in stocks
This might make it seem very risky to invest gold as an investment tool. This is because most people believe that it is no longer economically profitable to invest gold. This belief is due to the fact that many people see gold prices dropping because of the global economy. They think that they would lose money if they invested in gold. There are many benefits to investing in gold. Below we'll look at some of them.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It is a valuable store of value that has been used by many people throughout the world. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope this article has given you an improved understanding of gold investment tools. We recommend that you investigate all options before making any major decisions. Only then will you be able to make an informed decision.
By: Jamie Redman
Title: Solana and Avalanche: Emerging Competitors in the Crypto Market
Sourced From: news.bitcoin.com/smart-contract-tokens-solana-and-avalanche-surge-closing-in-on-bnb-and-ethereum/
Published Date: Wed, 20 Dec 2023 21:30:19 +0000