November was a monumental month for the crypto market in terms of performance, activity, politics and sentiment, JPMorgan (JPM) said in a research report on Monday.
“The re-election of President-elect Donald Trump has sparked a historic rally and surge in market capitalizations across the entire crypto ecosystem,” wrote analysts led by Kenneth Worthington. This included tokens, decentralized finance (DeFi), stablecoins, and publicly traded companies with crypto exposure.
The bank noted that the crypto ecosystem recorded its best monthly return, with market capitalization up 45%. The total crypto market cap has reached $3.3 trillion.
Volumes in the crypto market have more than doubled, with some digital assets seeing even higher growth in trading activity, the report said. The bank noted that non-fungible token (NFT) volumes were lower.
The U.S. spot exchange-traded products (ETPs) that the bank tracks also saw record monthly net sales, about $7.6 billion in total.
Bitcoin ETPs have grown in both size and trading volume and, while these products are not eating into BTC spot trading volumes, “the ecosystem continues to become increasingly focused around Bitcoin,” they said. write the authors.
Bitcoin’s dominance has been increasing for most of the year, although it has declined in recent weeks, in part due to the growing popularity of BTC ETPs, which accounted for $105 billion in assets at the end of the month last, JPMorgan said.
The mining economy improved in November as the rally in the world’s largest cryptocurrency outpaced hashrate growth, the report added. Hashrate refers to the computing power securing the Bitcoin network.
Read more: Crypto markets have benefited from a positive environment since the US elections: Citi
