In November, the cryptocurrency market value increased from $2.5 trillion to $3.6 trillion, and Bitcoin's dominance fell to 57%, with clear signs of an altcoin season. USDT supply increased to $133.4 billion, driving the bull run. Bitcoin rose 40% in November to a new high of nearly $99,600, partly due to Donald Trump's victory. Ethereum rose 46%, while XRP soared 400%, reaching a market value of $155 billion. The market rebound has led to a sharp rise in the prices of assets such as Bitcoin, Ethereum and Solana, and increased investor interest in crypto.
In November, the cryptocurrency market capitalization surged to $3.6 trillion.
· With the rise of altcoins, Bitcoin's dominance has fallen to 57%, indicating that a potential altcoin season is approaching.
· The supply of USDT stablecoins surged to $133.4 billion in November, fueling the bull market.
As the overall cryptocurrency market capitalization grew from $2.5 trillion in November to $3.6 trillion, the prices of Bitcoin (BTC), Ethereum (ETH), and XRP saw significant increases in November.
After the cryptocurrency market rebounded, the prices of Bitcoin, ETH, XRP, and SOL increased.
November was an exciting month for the cryptocurrency market, characterized by regulatory victories and a new bullish sentiment for assets like Bitcoin, which rose by 40% that month. Bitcoin's price surged significantly, with one of the main growth factors being the U.S. presidential election, where pro-crypto Donald Trump made a return to the White House.
After his victory, Bitcoin made a significant leap, breaking the historic high of $73,097 from March, and continued to set new all-time highs, peaking at nearly $99,600 on November 22.
According to data from Farside investors, most of the Bitcoin price trend is driven by inflows into spot BTC exchange-traded funds (ETFs), which recorded a net inflow of $6.4 billion this month. Most of the funds came from the asset management company BlackRock's IBIT, which saw its asset value increase by over $5 billion that month.
The market capitalization of the cryptocurrency market grew from $2.5 trillion in October to nearly $3.6 trillion in November, which is incredible. According to data from the cryptocurrency data platform Ecoinometrics, the two main assets are Bitcoin and Ethereum, both of which have outperformed U.S. stocks year-to-date.
This reflects an increasing dominance of Bitcoin in traditional investment markets relative to assets like the S&P 500 and other stocks. More and more investors and companies are beginning to show interest in Bitcoin as a means to hedge against inflation, while the fear of missing out (FOMO) also seems to be playing a role.
However, Bitcoin's dominance fell from 61.7% in October to 57.4% in November, indicating that altcoins have begun to gain momentum for a potential altcoin season.
Altcoin season is a period in the cryptocurrency market cycle when investors begin to shift funds from Bitcoin to altcoins after capitalizing on Bitcoin's profit wave.
However, CryptoQuant CEO Ki Young Ju stated that the significant increase in altcoin trading volume in November was not driven by a rotation from BTC. He added that, on the contrary, the supply of stablecoins has increased significantly, indicating true investor interest in these assets.
This is particularly evident in the USDT stablecoin supply, which grew by over 11% in November, reaching nearly $133.4 billion. The increase in stablecoin supply indicates that new funds are entering the market to stimulate actual spot demand.
Top altcoins Ethereum, Ripple (XRP), and Solana (SOL) saw significant increases in November, with Ripple's XRP leading the way. XRP achieved an impressive 400% increase this month, bringing its market capitalization to an astounding $155 billion, surpassing Solana and Tether to rank third among the largest cryptocurrency assets.
This increase was due to renewed interest and optimism about the asset following Donald Trump's election and Gary Gensler's announcement of his resignation as the chairman of the U.S. Securities and Exchange Commission (SEC).
Ethereum also experienced one of its highest monthly increases in November, rising by 46%. According to DefiLlama data, the Ethereum blockchain also dominated the DeFi ecosystem, with total value locked (TVL) increasing by over 4%, reaching 19.69 million ETH.
Similarly, Solana also achieved impressive gains last month, reaching an all-time high of $263, with a monthly increase of 35%. Following a wave of meme token trading activity, Solana's decentralized trading volume also surged significantly, peaking at $7.14 billion that month.
Bitcoin, altcoin, and stablecoin FAQs.
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to act as a medium of exchange. This payment method cannot be controlled by any individual, group, or entity, thus eliminating the need for third-party involvement in financial transactions.
Altcoins are any cryptocurrencies other than Bitcoin, but some people also consider Ethereum as a non-altcoin because forks happen from these two cryptocurrencies. If this is true, then Litecoin is the first altcoin, having forked from the Bitcoin protocol, and thus is its 'improved' version.
Stablecoins are cryptocurrencies designed to have stable prices, with their value backed by reserves of assets they represent. To achieve this, the value of any stablecoin is pegged to commodities or financial instruments, such as the U.S. dollar (USD), with its supply regulated by algorithms or demand. The primary goal of stablecoins is to provide entry/exit points for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies often exhibit volatility.
Bitcoin dominance refers to the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It clearly indicates investor interest in Bitcoin. High Bitcoin dominance typically occurs before and during bull markets, when investors tend to invest in relatively stable and high market cap cryptocurrencies like Bitcoin. A decline in Bitcoin dominance usually means investors are shifting their capital and/or profits to altcoins in search of higher returns, which can often trigger explosive rebounds in altcoins.