Stablecoin Market Capitalization Sees Significant Increase
Recent data shows a notable rise in the combined market capitalization of leading stablecoins over the past month. The total market capitalization has increased from $131.71 billion to $136.56 billion, indicating a growth of approximately $4.85 billion.
Tether (USDT) Approaching 100 Billion Tokens in Circulation
Tether, the top stablecoin by market capitalization, experienced a 4.8% increase in its supply, reaching $95.91 billion. It is now only 4.09 billion tokens away from achieving a significant milestone of 100 billion tokens in circulation.
USD Coin (USDC) Surpasses USDT in Growth
USD Coin, the second-largest stablecoin, witnessed a growth rate of 7.2% in its supply. Its market capitalization has climbed from $24.71 billion to $26.50 billion in just 30 days. This growth rate surpassed that of Tether during the same period.
DAI Witnesses Slight Decline, FDUSD Surges
Maker's stablecoin DAI experienced a minor decline of 0.8% in the past month. Despite the decrease, DAI still holds the position of the third-largest stablecoin with a market capitalization of $5.19 billion. On the other hand, first digital USD (FDUSD) witnessed a significant surge in supply, escalating by 42.8%. Currently, FDUSD's market capitalization stands at $2.57 billion.
TrueUSD (TUSD) Faces Supply Decline and Stability Concerns
TrueUSD, occupying the fifth spot among stablecoins, experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. Additionally, TUSD faced stability issues with its intended dollar-peg, with its value dropping to the $0.97 range on multiple occasions in January 2024.
Other Stablecoins' Performance
Tron's USDD witnessed a modest increase of 1.1%, while the frax dollar (FRAX) recorded a slight decrease of 0.1%. Paxos' USDP witnessed a decline of 4.3%, while Paypal's PYUSD achieved a notable rise of 13.6%. Alchemix USD (ALUSD), the tenth-ranked stablecoin, saw a decrease of 0.9% in its supply.
Emerging Players and Shifting Rankings
In the stablecoin market, emerging players like FDUSD and PYUSD are ascending in the hierarchy, while former frontrunners such as BUSD and GUSD have dropped out of the top ten. However, stablecoins like USDT, USDC, and DAI have maintained their positions and market dominance. The growth and fluctuations in the stablecoin market reflect the evolving nature of the crypto economy.
We invite you to share your thoughts and opinions on the growth of the stablecoin economy in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
Precious metals make a great investment in retirement accounts. They have been around since biblical times and continue to hold value today. A great way to diversify and protect your portfolio is to invest in precious metals such silver, gold, and platinum.
Certain countries even allow their citizens to save money in foreign currencies. You can buy gold bars in Canada, and then keep them at the home. Then, when you go back to visit family, you can sell those same gold bars for Canadian dollars.
This is a great way to invest in precious metals. It's especially useful for anyone who lives outside North America.
Which is stronger, 14k or sterling gold?
While gold and silver are both strong metals but sterling silver is less expensive than silver because it contains 92% pure Silver rather than 24%.
Sterling silver is sometimes called fine silver. This is because it is made with a mix of silver and different metals like copper or zinc.
Gold is generally considered to be very strong. It takes great pressure to break it apart. If you drop something on top of a chunk of gold it will shatter into thousands of pieces rather than breaking into two halves.
But silver isn’t nearly as sturdy as gold. A sheet of silver would likely bend and fold if you dropped an item on it.
It is commonly used in coins and jewelry. Silver's value can fluctuate depending on the supply and demand.
How does an IRA with gold or silver work?
A gold and silver IRA allows you to invest in precious metals, such as gold and silver, without paying taxes on any gains. They make a great investment choice for those looking to diversify.
If you are older than 59 1/2, interest earned from these account does not attract income tax. Any appreciation in the account's worth does not attract capital gains tax. There are limits on the amount of money that you can place into this account. The minimum amount permitted is $10,000 You cannot invest at all if you are under age 59 1/2. The maximum annual contribution is $5,000.
Your beneficiaries could receive less if you die before your retirement. Your estate must include enough assets to cover the balance remaining in your account after all other expenses and debts have been paid.
While some banks offer gold and/or silver IRA options to their customers, others require them to open a regular brokerage bank account that allows you to purchase certificates or shares.
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to open a Precious Metal IRA
Precious metals remain one of the most highly-valued investment options. Precious metals have a higher return than traditional investments like bonds or stocks, which is why they are so sought-after. However, you need to be careful when investing in precious materials. These are the first things you need to know if you're looking to open a precious metal IRA.
There are two main types of precious metal accounts: physical precious metals accounts and paper gold and silver certificates (GSCs). Each type has advantages and drawbacks. For example, physical precious metals accounts offer diversification benefits, while GSCs are easy to access and trade. Keep reading to find out more about these options.
Physical precious Metals accounts consist of bullion, bullion, and bars. While this option provides diversification benefits, it also comes with some drawbacks. Precious metals can be expensive to store, buy and sell. Moreover, their large size can be difficult to transport them from one location to another.
The silver and paper gold certificates are also relatively affordable. These certificates can also be traded online, and they are easy to access. This makes them ideal for people who don't want to invest in precious physical metals. However, they aren't as diversified as their physical counterparts. Additionally, they are backed by government agencies like U.S. Mint and could lose value if inflation rates rise.
You should choose the account that best suits your financial needs before you open a precious-metal IRA. These are some factors to consider before you do this:
- Your tolerance level
- Your preferred asset allocation strategy
- How much time do you have to invest
- Consider whether you will use the funds to trade short-term.
- Which tax treatment would you prefer?
- Which precious metal(s) you'd like to invest in
- How liquid can your portfolio have to be
- Your retirement age
- Where you'll store your precious metals
- Your income level
- Your current savings rate
- Your future goals
- Your net worth
- Special circumstances that might affect your decision
- Your overall financial situation
- Your preference between physical or paper assets
- You are willing to take chances
- Your ability to handle losses
- Your budget constraints
- Financial independence is your goal
- Your investment experience
- Your familiarity in precious metals
- Your knowledge about precious metals
- Your confidence and faith in the economy
- Your personal preferences
Once you have decided which type of precious-metal IRA is best for you, it's time to open an account at a reputable dealer. These companies can also be found online, through word-of mouth or referrals.
Once you have opened your precious-metal IRA, it is time to decide how much you want to deposit. It's important to note that each precious metal IRA account carries different minimum initial deposit amounts. Some require only $100, while others will allow you to invest up to $50,000.
You can invest as much or as little money in your precious metal IRA as you like. You should choose a higher initial deposit if you want to build wealth over time. You might prefer a lower initial deposit if you intend to invest smaller amounts every month.
You can purchase a variety of investments, regardless of whether the precious metals are actually used in your IRA. Here are some of the most common:
- Bullion bars. Rounds, and gold coins.
- Silver – Rounds, and coins
- Platinum – Coins
- Palladium Round and Bar Forms
- Mercury – Round and Bar Forms
By: Jamie Redman
Title: The Growth of the Stablecoin Economy in January 2024
Sourced From: news.bitcoin.com/stablecoin-market-cap-climbs-4-85-billion-in-30-days-usdt-usdc-fdusd-spearhead-growth/
Published Date: Wed, 31 Jan 2024 14:30:53 +0000