- DEX volume on Solana increased, helping the total spot volume to $96 billion.
- BTC outperformed other assets as a spot ETF could be approved.
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 insights, the monthly trading volume closed in on $1 trillion.
A few weeks ago, AMBCrypto reported how these cryptocurrencies have been outperforming traditional assets. This was also confirmed by the blockchain intelligence firm.
Low-cap tokens trigger DEX volume
During the period, spot volume on Decentralized Exchanges (DEXes) rose from $61 billion to $96 billion. Messari, in its report, opined that:
“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.”
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.
As a result, Solana was able to gain a substantial share of the DEX market which Ethereum [ETH] almost always dominated.
Also, there are some airdrops including Jito and Jupiter coming on Solana. Should more projects announce more rewards for users, Solana’s DEX volume may continue to surge.
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 inflows per investment product.
Solana, apart from ETH at one point, was also the top altcoin with millions of dollars allocated to its investment products.
The market ignores the persecution
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:
“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%.”
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 short-lived despite plunging Binance’s market share.
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 SOL’s market cap in BTC terms
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.