- DEX volume on Solana increased, bringing the total spot volume to $96 billion.
- BTC outperformed other assets as a spot ETF was approved.
Given the sideways movement in the previous month, the month of November proved to be crucial for the crypto market. According to Messari Insightsthe monthly trading volume was $1 trillion.
The value represents a 17% increase month-on-month (MoM), thanks to likes like Bitcoin [BTC] And Solana [SOL].
A few weeks ago, AMBCrypto reported how these cryptocurrencies were outperforming traditional assets. This was also confirmed by the blockchain intelligence company.
Source: Messari
Low-cap tokens trigger DEX volumes
During the reporting period, spot volume on decentralized exchanges (DEXes) increased from $61 billion to $96 billion. Messari said in his report:
“This increase means that DEXs now account for 10% of total exchange volume, marking their highest market share since June.” The increase is due to growing demand for meme coins and low-cap projects.”
One of the reasons for the increase in DEX volume was the Solana ecosystem. There were many low-cap tokens performing well on Solana in November. This attracted market participants to continuously provide liquidity to the network.
This allowed Solana to gain a significant share of the DEX market ether [ETH] almost always dominated.
Besides, there are some Air drops including Jito and Jupiter coming to Solana. If more projects announce more rewards for users, Solana's DEX volume could continue to increase.
Source: Messari
This information should come as no surprise to AMBCrypto readers. At various points we discussed the impact of Bitcoin and Solana on the market. On a few occasions we have talked about how Bitcoin has been a leader tributaries per investment product.
At times, Solana was also the top altcoin alongside ETH and invested millions of dollars in its investment products.
The market ignores the pursuit
Additionally, optimism about a possible Bitcoin ETF approval increased. This is why buying pressure increased as the coin traded above $40,000. This led Messari to conclude that:
“The next decision deadline for Blackrock’s spot Bitcoin ETF is January 10th. This also applies to leading ETF analysts project a high probability of agreement, the probability is estimated at 90%.”
However, it wasn't just Bitcoin and Solana that were in the spotlight. Ethereum had its share of good side. This was because BlackRock filed for an Ethereum spot ETF. While there was good news, there was also a downside.
But this time it was Binance, the largest centralized exchange (CEX) in the world.
The US government also imposed a $4.3 billion fine on Binance, among other sanctions. However, after the agreement, there was only fear of uncertainty and doubt (FUD). short-lived despite Binance's decline in market share.
Source: Messari
Furthermore, market participants saw no reason to stop the positive momentum due to the incident. Other exchanges such as Upbit, Bybit and Coinbase also saw an increase in volume.
Realistic or not, here it is The market capitalization of SOL in BTC
Given the current situation, there is potential for the cryptocurrency market cap to grow well beyond $1.58 trillion.
The sector could also become more mainstream. This is due to the growing number of traditional institutions adopting Bitcoin.
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