November marked an incredible month for the cryptocurrency market, seeing a remarkable rise in performance, activity, and political sentiment, as noted by JPMorgan (JPM) in a recent research report.
"President-elect Donald Trump's reelection ignited a significant rally and surge in market caps throughout the crypto sector," analysts led by Kenneth Worthington stated. This rally embraced various aspects of the cryptocurrency ecosystem, including tokens, decentralized finance (DeFi), stablecoins, and public companies with exposure to crypto.
The report highlighted the following key points:
- The total market capitalization of cryptocurrencies surged by 45%, representing the best monthly return to date, with the total market cap reaching $3.3 trillion.
- Trading volumes across the crypto sector more than doubled, with certain assets seeing even higher trading growth, although NFT volumes remained underwhelming.
- U.S. spot exchange-traded products (ETPs) tracked by JPMorgan reported record monthly net sales, totaling around $7.6 billion combined.
- Bitcoin ETPs experienced increased size and trading volumes, although these products have not significantly impacted BTC spot trading volumes.
Overall, Bitcoin dominance has been on the rise throughout the year, experiencing a decline in recent weeks due to the growing popularity of BTC ETPs, which it noted accounted for $105 billion of assets at the close of November.
Mining economics also improved, as the increase in Bitcoin's value outpaced growth in hashrate, which measures the computational power securing the Bitcoin network.
Read further: Crypto Markets Have Benefited From a Positive Environment Since U.S. Election: Citi.
