The cryptocurrency market saw a sharp increase in market capitalization in November, reaching $3.6 trillion. As altcoins rise, Bitcoin's dominance drops to 57%, suggesting that altcoin season may be imminent. The supply of the USDT stablecoin increased to a high of $133.4 billion in November, fueling the bull market.
Bitcoin (BTC), Ethereum (ETH), and XRP saw significant price increases in November, rising from $2.5 trillion to $3.6 trillion in November, following a surge in general cryptocurrency market capitalization. Increased.
Bitcoin, ETH, XRP, SOL prices soar as crypto market rises
November was an exciting month for crypto markets, featuring regulatory victories and renewed bullish sentiment towards assets such as Bitcoin, which soared 40% in the month. Bitcoin prices rose significantly, but the main growth factor was the U.S. presidential election that saw cryptocurrency advocate Donald Trump return to the White House.
Following his victory, Bitcoin made a huge leap forward, breaking its previous all-time high resistance of $73,097 in March and continuing to make new all-time highs since then, hitting nearly $99,600 on November 22nd. The highest value was recorded.
BTC/USDT daily chart
According to Farside Investor data, most of Bitcoin's price movements were fueled by inflows into spot BTC exchange-traded funds (ETFs), which recorded $6.4 billion in net inflows for the month. Most of the inflows came from asset manager BlackRock's IBIT, which added more than $5 billion in assets in the month.
The cryptocurrency market has grown from $2.5 trillion in October to an incredible market capitalization of nearly $3.6 trillion in the same month. The two most dominant assets are Bitcoin and Ethereum, which have outperformed U.S. stocks in year-to-date returns, according to crypto data platform Ecoinometrics.
Bitcoin and Ethereum dominated the November returns.
US stocks were also strong.
However, everything else performed poorly.
Risk assets come into play again. pic.twitter.com/gCViAfbFZc
— Ecoinometrics (@ecoinometrics) December 2, 2024
This reflects Bitcoin's growing dominance over assets such as the S&P 500 and other stocks in traditional investment markets. More investors and businesses are turning to Bitcoin as a hedge against inflation, but fear of missing out (FOMO) also appears to be playing a role.
However, Bitcoin's dominance has declined from 61.7% in October to 57.4% in November, suggesting that altcoins are starting to gain momentum heading into a potential altseason.
Altseason is the period in the crypto market cycle when investors begin to move funds from Bitcoin to altcoins after fully riding the BTC profit wave.
However, CryptoQuant CEO Ki Young Ju said the surge in altcoin trading volume in November was not driven by rotation away from BTC. On the contrary, the supply of stablecoins has increased significantly, showing real interest in these assets among investors, he added.
This is evidenced by the supply of the USDT stablecoin, which increased by more than 11% in November to reach an all-time high of nearly $133.4 billion. The increase in stablecoin supply suggests that new money is flowing into the market to stimulate real spot demand.
USDT market capitalization | CoinGecko
Top altcoins Ethereum, Ripple (XRP), and Solana (SOL) posted significant gains in November, with Ripple’s XRP leading the way. XRP rose an impressive 400% in the month, reaching a staggering $155 billion in market capitalization and retaining its third place among the largest crypto assets, overtaking Solana and Tether.
The rally stemmed from renewed interest and optimism in the asset following Donald Trump's election victory and Gary Gensler's announcement that he would step down as SEC chairman.
Ethereum also hit one of its monthly highs in November, marking a 46% rise. The Ethereum blockchain also dominated the DeFi ecosystem, with total value locked (TVL) increasing by more than 4% to 19.69 million ETH, according to DefiLlama data.
Similarly, Solana posted impressive gains last month, setting a new record of $263 with a monthly performance of 35%. Solana also saw a notable increase in trading volume on the decentralized exchange following a wave of memecoin trading activity, reaching a peak of $7.14 billion in the same month.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
