Solana

Bitcoin ETF

Bitcoin

<img width="1200" height="900" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07160719/Bitcoin-Solana-1.png" class="attachment-full size-full wp-post-image" alt="Bitcoin news alongside Solana news" loading="lazy" style="float:left; margin:0 15px 15px 0;" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07160719/Bitcoin-Solana-1.png 1200w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07160719/Bitcoin-Solana-1-300x225.png 300w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07160719/Bitcoin-Solana-1-1024x768.png 1024w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07160719/Bitcoin-Solana-1-768x576.png 768w" sizes="(max-width: 1200px) 100vw, 1200px">
<ul>
 <li>DEX volume on Solana increased, helping the total spot volume to $96 billion.</li>
 <li>BTC outperformed other assets as a spot ETF could be approved.</li>
</ul>
The month of November proved to be crucial for the crypto market considering the sideways movement it had in the previous month. According to Messari’s <a href="https://messari.io/report/market-liquidity-nov-2023?utm_medium=organic_social&amp;utm_source=twitter_messari&amp;utm_campaign=market_liquidity_nov_2023" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">insights</a>, the monthly trading volume closed in on $1 trillion.
The value represents a 17% Month-on-Month (MoM) increase, thanks to the likes of <a href="https://eng.ambcrypto.com/search/bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> and <a href="https://eng.ambcrypto.com/search/solana" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Solana [SOL]</a>. 
A few weeks ago, AMBCrypto reported how these cryptocurrencies have been outperforming traditional assets. This was also confirmed by the blockchain intelligence firm.
<div id="attachment_81330" style="width: 100%" class="wp-caption aligncenter"><a href="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161154/Screenshot-2023-12-07-at-10.55.16.png" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-81330" loading="lazy" class="size-full wp-image-81330" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161154/Screenshot-2023-12-07-at-10.55.16.png" alt="Bitcoin's peformance against Solana, Ethereu, S&amp;P 500" width="846" height="529" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161154/Screenshot-2023-12-07-at-10.55.16.png 846w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161154/Screenshot-2023-12-07-at-10.55.16-300x188.png 300w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161154/Screenshot-2023-12-07-at-10.55.16-768x480.png 768w" sizes="(max-width: 846px) 100vw, 846px"></a>
 Source: Messari
</div>
<h4>Low-cap tokens trigger DEX volume</h4>
During the period, spot volume on Decentralized Exchanges (DEXes) rose from $61 billion to $96 billion. Messari, in its report, opined that:
<blockquote>
 “This surge means that DEXs now account for 10% of the total exchange volumes, marking their highest proportion of the market share since June. The increase can be attributed to the growing demand for meme coins and low-cap projects.”
</blockquote>
One of the reasons the DEX volume increased was because of the Solana ecosystem. In November, there were a lot of low-cap tokens that performed well on Solana. So, this lured market participants to continually provide liquidity for the network.&nbsp;
As a result, Solana was able to gain a substantial share of the DEX market which <a href="https://eng.ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum [ETH]</a> almost always dominated. 
Also, there are some <a href="https://eng.ambcrypto.com/upcoming-solana-airdrops-may-have-this-effect-on-the-network/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">airdrops</a> including Jito and Jupiter coming on Solana. Should more projects announce more rewards for users, Solana’s DEX volume may continue to surge.
<div id="attachment_81332" style="width: 100%" class="wp-caption aligncenter"><a href="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161256/Screenshot-2023-12-07-at-11.02.53.png" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-81332" loading="lazy" class="size-full wp-image-81332" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161256/Screenshot-2023-12-07-at-11.02.53.png" alt="Solana DEX volume" width="842" height="478" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161256/Screenshot-2023-12-07-at-11.02.53.png 842w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161256/Screenshot-2023-12-07-at-11.02.53-300x170.png 300w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161256/Screenshot-2023-12-07-at-11.02.53-768x436.png 768w" sizes="(max-width: 842px) 100vw, 842px"></a>
 Source: Messari
</div>
This information may not be surprising to AMBCrypto readers. At different points, we discussed Bitcoin and Solana’s impact on the market. On some occasions, we discussed how Bitcoin led <a href="https://eng.ambcrypto.com/crypto-funds-record-largest-inflow-streak-in-over-two-years/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">inflows</a> per investment product.
Solana, apart from ETH at one point, was also the top altcoin with millions of dollars allocated to its investment products.&nbsp;
<h4>The market ignores the persecution&nbsp;</h4>
Furthermore, the optimism around a potential Bitcoin ETF approval increased. Because of this, buying pressure increased as the coin traded above $40,000. This led Messari to conclude that:
<blockquote>
 “The next decision deadline for Blackrock’s spot Bitcoin ETF is January 10. Also, leading ETF analysts are projecting a high likelihood of approval, estimating the odds at 90%.”
</blockquote>
However, Bitcoin and Solana were not the only ones in the spotlight. Ethereum had a share of the good side. This was because BlackRock filed to an Ethereum spot ETF. While there was glad tiding, there was also a downside.
But this time, it involved Binance, the largest Centralized Exchange (CEX)in the world. 
The U.S. government fined Binance $4.3 billion alongside other sanctions. However, the Fear Uncertainty, and Doubt (FUD) after the settlement was only <a href="https://eng.ambcrypto.com/binances-usdt-exodus-triggers-suspicion-will-it-increase-fud/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">short-lived</a> despite plunging Binance’s market share.
<div id="attachment_81333" style="width: 100%" class="wp-caption aligncenter"><a href="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161512/Screenshot-2023-12-07-at-11.18.17.png" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-81333" loading="lazy" class="size-full wp-image-81333" src="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161512/Screenshot-2023-12-07-at-11.18.17.png" alt="Binance spot volume after the SEC case" width="830" height="474" srcset="https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161512/Screenshot-2023-12-07-at-11.18.17.png 830w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161512/Screenshot-2023-12-07-at-11.18.17-300x171.png 300w, https://engamb.sfo2.digitaloceanspaces.com/wp-content/uploads/2023/12/07161512/Screenshot-2023-12-07-at-11.18.17-768x439.png 768w" sizes="(max-width: 830px) 100vw, 830px"></a>
 Source: Messari
</div>
In addition, market players did not see any reason to halt the positive momentum because of the incident. So, other exchanges like Upbit, Bybit, and Coinbase experienced a surge in volume.
Realistic or not, here’s <a href="https://ambcrypto.com/calculator/marketcap" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">SOL’s market cap in BTC terms</a>
Considering the present state, the crypto market cap has the potential to increase far beyond $1.58 trillion.
Also, the sector could become more mainstream. This is because of the growing number of traditional institutions aligning with Bitcoin.
The post <a rel="noopener noreferrer nofollow" href="https://eng.ambcrypto.com/how-bitcoin-solana-eased-market-pressure-in-november/" data-wpel-link="internal" target="_self">How Bitcoin, Solana eased market pressure on its price predictions</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://eng.ambcrypto.com" data-wpel-link="internal" target="_self">AMBCrypto</a>.

How Bitcoin, Solana eased market pressure on its price predictions

AMBCrypto

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