Discover the latest market insights and trends in CMC’s Monthly Report, which covers the crypto market overview, DeFi, NFTs, stablecoins, VC fundraising and more.
Market Overview
The total crypto market cap reached $1.42 trillion at the end of November, representing a 13.28% MoM. The market activities and the spot market trade volume have both increased to a healthy level, similar to April/May this year.
The CMC Crypto Fear and Greed Index, which represents the market sentiment on the top large cap coins, has reached 73 (Greed), the highest YTD.
https://coinmarketcap.com/charts/
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Liquidity
Total crypto trade volume remains elevated as BTC rallies
After breaking the $35,000 level at the start of November, Bitcoin (BTC) has continued to gain steadily. Liquidity in the market has remained elevated after Bitcoin’s strong performance in October, in which BTC gained 28%. Trading volume has largely remained above the $50 billion mark, with volumes spiking to $85 billion on Nov. 11 as BTC broke the $35,000 level to touch $38,000. Meanwhile, Ethereum (ETH) also broke the $2,000 level on Nov. 9, contributing to the higher trading volumes.
Derivatives
Source: Glassnode
BTC's strong price performance drove the demand for more futures trade, and the open interest has increased from around $10billion in October to now around $15billion. The increased demand was largely from institutional investors, as CME now surpassed Binance as the number one market place for BTC futures trading.
Top Performers in November 2023 (Top 200 Coins)
USTC leads top gainers in large to mid caps
The top gainer among Top 200 ranked cryptocurrencies is TerraClassicUSD (USTC) — the algorithmic stablecoin of the Terra Classic ecosystem, which collapsed last May. Binance listed the USTC Perpetual Contract on Nov. 27 and there are plans to relaunch the stablecoin, this time collateralized by BTC. Trading volume hit $1.59 billion on Nov. 27, the highest since the stablecoin depegged in May 2022.
SuperVerse (SUPER) is the second top performer amongst the Top 200 cryptocurrencies. SuperVerse is building NFT functionality and blockchain gaming, and currently has two main products: Impostors, a free-to-play social game, and Giga Mart, an NFT marketplace. SUPER’s stellar performance comes on the back of a strong Web3 gaming sector, with other gaming tokens like Echelon Prime (PRIME) and Illuvium (IVL) also in the top 10. Echelon Prime is developing an AI-powered, sci-fi trading card game (TCG) Parallel, which will be released on Steam and the Epic Games Store. Illuvium is developing three games: Overworld, Zero and Arena, and was listed on the Epic Games Store on Nov. 28.
Other notable top gainers among the Top 200 include ORDI (ORDI), the BRC-20 memecoin which listed on Binance on Nov. 7, Bittensor (TAO), the open-source decentralized AI protocol leading the AI sector, and Celestia (TIA), the modular blockchain network which launched its mainnet and airdropped its native TIA token on Oct. 31.
Stablecoin Flows
Total stablecoin supply increases 3.22%; USDT leads, USDC and Dai unchanged
Stablecoin inflows continue to increase as capital enters the market, with total crypto market cap gaining 11.7% in the month of November. This comes as inflows for digital asset investment products continued for 9 consecutive weeks, totalling $1.07 billion for the month ending Nov. 24, signaling strong institutional interest.
This reflects the view held by some analysts that the decline in stablecoins market cap has bottomed out, with total stablecoin supply increasing from the lows of $121.4 billion in October this year.
DeFi
Decentralized exchanges experienced volume decrease in November
DEX volume this month has declined about 18.3% MoM, with Curve Finance gaining back some volume momentum towards the end of the month. Uniswap still dominates the market, with c.62.8% market share. PancakeSwap takes No.2 spot with 15.8% market share in November, driven by its new product update and incentive plan.
Lending TVLs increased to over $18.36 billion
Lending TVLs experienced a positive month across the board, with 10.3% MoM increase in the total Lending TVLs. Although there is not much change in the largest lending DApps such as AAVE, other smaller lending protocols seem to be gaining a growing share of TVL.
Layer 1 & Layer 2 Overview
Souce: CMC; StakingRewards; Defillama
Ethereum generated the most revenue this month with $198.8 million, and with the increased activities on the network, aka increased gas fees being burnt, ether has switched back into deflationary. Solana and Tron have both experienced large increases in network activities this month.
Network
Source: CMC; Defillama; StakingRewards; Etherscan; BscScan; Solscan; Polygonscan
Solana leads in terms of average daily transactions (non-vote), as activity in the SOL ecosystem picks up following a resurgence. However, BNB Chain leads in total number of daily active addresses, suggesting more users are utilizing the blockchain.
DeFi and NFTs
Source: CMC; Defillama; Cryptoslam; ElectricCapital
Ethereum maintains its lead in terms of DEX volume, stablecoin market capitalization, total value borrowed and NFT volume. However, Solana is second in terms of NFT volume, suggesting a vibrant NFT ecosystem.
Layer 2 Overview
Layer 2 networks have seen an increased activity in November, where Arbitrum saw a peak in activities on November 25, following the launch of Arbitrum Frontier by Dopex. ARB, ZKSync and OP still dominate the Layer2 market share. Scroll started off strong coming from last month but has seen decreased activity. Linea made a strong push this month, overtaking zkSync at one point, after its Linea DeFi voyage launched at the start of November.
NFT Market Update
Bitcoin surpassed Ethereum in total trade volume for November
Source: Cryptoslam
Total NFT sales volume for November reached $1,020,914,300, a 129% increase MoM. This was largely driven by a bullish market, and more particularly due to the hype surrounding Bitcoin Ordinals. Trading volume on Bitcoin surpassed Ethereum for the first time in November, as BRC-20 based NFTs experienced a resurgence since gaining mainstream attention in February this year.
BRC-20 collection SATS and RATS takes top spot
Source: Cryptoslam
In November, Bitcoin Ordinals collection $SATS and $RATS overtook Bored Ape Yacht Club (BAYC) and CryptoPunks in terms of trading volume for November, generating $95 million and $48 million in sales volume respectively.
Topic of the Month: The Rise of SOL Ecosystem
Solana’s DeFi and Liquid Staking TVL Surges
Comparing Solana’s price performance and its TVL, we see that LSD flows are in larger magnitudes compared to DeFi flows even during price increases, highlighting the popularity of liquid staking of SOL. This comes as major liquid staking protocol Jito announces a retroactive airdrop of governance token, JTO.
Looking at the NFT landscape, although the blue-chip index floor fell to ~35 SOL in mid-November, it has since been climbing back up slowly for the rest of the month. Volumes remained relatively stable at the first half of the month, but surged towards the end reaching highs of over 150K SOL.
From the list of DApps ranked based on the number of Unique Active Wallets (UAW), we see that there is a positive growth for most of the DApps on Solana, representing an increased user interest and activity in their entire ecosystem.
Overall, the increased interest in Solana’s ecosystem is likely reinforced by the surge in SOL’s value. This is coupled with the protocols such as Pyth Network, Jupiter, and Jito announcing their airdrop, generating greater users’ interest in joining the ecosystem.
Fundraising Analysis in November
Fundraising in November hit 1.05B, a significant increase from last month by more than 2x MoM while signifying a growing trend from the past 3 months. Looking at the different categories invested this month, CeFi took the 2nd largest share by dollar value invested, unlike the usual trend.
Spartan Group was the most active VC for this month with 2 lead investments. a16z is the only other active VC this month that has 2 lead investments as well.
Notable investments this month:
Kinto
Raise Amount: $3.5M
Funding Round: Undisclosed
Investors: Kyber Capital, The Spartan Group, ParaFi Capital, SkyBridge Capital, Kraynos Capital, Deep Ventures, Modular Capital, Tane, Robot Ventures, Santiago R. Santos, Alex Klokus
About: Kinto is the first KYC’ed L2 on Ethereum, focused on providing safe and insured access to financial services. Kinto is non-custodial, transparent, permissionless, and governed by the community while providing AML and fraud monitoring at the blockchain level.
Blast
Raise Amount: $20M
Funding Round: Undisclosed
Investors: Paradigm, Standard Crypto, eGirl Capital, Manifold, Santiago R. Santos
About: Blast is a Layer 2 built using optimistic rollups that provide additional yield for users and developers by converting the ETH and stablecoins deposited into Blast through Lido and MakerDAO’s T-bill protocol to earn liquid staking fees and Treasury Bill yields.
Panoptic
Raise Amount: $7M
Funding Round: Seed
Investors: Greenfield Capital, Hashkey Capital, gumi Cryptos Capital (gCC), L1 Digital, Heartcore Capital, Comma3 Ventures, Zee Prime Capital
About: Panoptic is the first perpetual, oracle-free options protocol built on the Ethereum blockchain that achieves this through the use of liquidity on Uniswap v3.
New CMC Products
Comprehensive Crypto Fund Tracking
CMC has launched a dedicated Crypto Funds tracker amid growing demand for regulated crypto investment vehicles. This new resource provides discovery and analytics on the expanding range of index funds, ETFs, mutual funds, and hedge funds with exposure to digital assets.
With crypto-focused funds proliferating globally, the new CMC crypto funds tracker shines a spotlight on this fast-growing market segment. As more crypto-based ETFs, index funds and other products emerge, CMC will continue expanding its industry-leading market coverage. Check it out here.
Bitcoin Halving Countdown
CMC now prominently displays an accurate, real-time countdown banner for the next Bitcoin halving event on its homepage. As the halving approaches, the countdown timer on CMC keeps users updated on exactly when this occasion will occur down to the second. It calculates the remaining time until halving based on up-to-date blockchain data on the latest BTC block height.
CoinMarketCap Mobile App Upgrades User Charting Capabilities
CoinMarketCap has introduced a variety of upgrades to the charting capabilities natively on the CMC mobile app. These enhanced features enable a more flexible and sophisticated analysis of coin price data. Features include drawing tools on candlestick charts, improved navigation across custom time ranges, new interval options and more technical indicators.
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