JPMorgan (JPM) said in a research report on Monday that November was a monumental month for the crypto market in terms of performance, activity, politics and sentiment.
Analysts led by Kenneth Worthington said: “President-elect Donald Trump’s re-election has triggered a historic rally, triggering a surge in market capitalization across the crypto ecosystem.” This includes tokens, decentralized finance (DeFi), stablecoins, and publicly traded companies with crypto exposure.
The bank noted that the cryptocurrency ecosystem recorded its highest monthly return with a 45% increase in market capitalization. The market capitalization of virtual currencies has ballooned to $3.3 trillion.
According to the report, the overall cryptocurrency market volume has more than doubled, with some digital assets seeing even higher growth in trading activity. The bank noted that the volume of non-fungible tokens (NFTs) has decreased.
U.S. spot exchange-traded products (ETPs), which the bank tracks, also posted record monthly net sales, totaling about $7.6 billion.
Bitcoin ETPs are growing in both size and trading volume, and while these products are not cannibalizing BTC spot trading volume, “the ecosystem continues to trend increasingly concentrated around Bitcoin.” the authors write.
According to JPMorgan, Bitcoin's dominance has been on an upward trend for most of the year, although it has declined in recent weeks, due in part to the growing popularity of BTC ETPs, which accounted for $105 billion in assets as of the end of last month. It is said that there is.
The mining economy improved in November as gains in the world's largest cryptocurrency outpaced hashrate growth, the report added. Hashrate refers to the computational power that secures the Bitcoin network.
Read more: Crypto markets have benefited from a positive environment since the US election: Citi
