Binance Research: Industry vitality continues to explode, looking back at the crypto market in November 2023

Binance Research

23-12-04 16:00

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Original Title: "Monthly Market Insights - December 2023"

Source: Binance Research

Translated by: Plain Language Blockchain

Although winter has arrived in the northern hemisphere, the cryptocurrency market in November continues to rebound, and the industry's vitality is gathering momentum. According to the latest report released by BN Research, there are signs of positive trends in the market this month. Let's take a look at the main development trends and key insights mentioned in the report.

Key points:

·In November, the encryption market maintained an upward trend, with a total market value increase of 11% compared to the previous month. The first half of the month saw strong growth, followed by a period of volatility. SOL and LINK have been the top ten market capitalization leaders for two consecutive months, with monthly growth rates of 69% and 29%, respectively. These two cryptocurrencies have also attracted a lot of interest from institutional investors, with GSOL trading at a premium of up to 800% and GLINK reaching 200%.

Bitcoin transaction fees have exceeded Ethereum's, reaching the highest level in over two years. There is renewed interest in the Ordinals protocol, which has driven an increase in Bitcoin transaction activity and demand for block space.

·Solana's DEX trading volume increased by more than 166% between October and November. At the same time, the daily activity and market value of SOLToken also increased, and the increase in DeFi TVL exceeded 101%. The recent increase in airdrop activities on Pyth Network, Jupiter Exchange, and Jito Network, as well as the implementation of incentive plans by other major Solana DeFi protocols, have become key driving factors for the increase in DEX activity. In addition, the widespread promotion of SPL-20Token is also an important factor, creating a unique market for Solana itself.

·Polygon zkEVM reached an important milestone in November, with its TVL soaring to $107.8 million, a year-on-year increase of 47.2%. This growth is due to a series of key developments and reflects Polygon's continued focus and development in the ZK space, deepening people's interest in its ecosystem and indicating a positive outlook for Polygon zkEVM.

·Telegram bots are still popular among users. Despite a decrease in media coverage in recent months, this field continues to remain active with trading volume continuing to rise.

1. Overview of the Development of the Cryptocurrency Market

The cryptocurrency market in November maintained an upward trend, with a total market value increase of 11% compared to the previous month. At the beginning of the month, there was a strong surge, and the market quickly grew by 12%. Subsequently, there were fluctuations, and the pullbacks on November 16th and 21st led to a decrease in total market value of about 5% each. These pullbacks seem to be a normal market adjustment, a natural reaction to the rapid growth that preceded them. Since October, the total market value of the cryptocurrency market has increased by more than 35%. With key factors gradually being taken into account in pricing, the market oscillates frequently between bullish and bearish sentiments.

Cryptocurrency market capitalization increased by 11% each month in November. Monthly change in cryptocurrency market capitalization (%)

Top 10 cryptocurrencies by market capitalization monthly performance

In November, the top 10 cryptocurrencies all saw positive gains, with SOL and LINK performing particularly well. SOL led the way with a 69.5% increase, followed closely by LINK with a 29.11% increase. Solana's recent recovery trend has been particularly noteworthy, with its annual conference "Solana Breakpoint" attracting 13,000 attendees and growing community interest. The partnership between Google Cloud and Solana was a key highlight of the event, marking an important milestone for the Solana ecosystem.

This positive sentiment is also reflected in the institutional space, with GSOL and GLINK trading at extraordinary premiums of 800% and 1200%, respectively, for Grayscale's Solana Trust and Link Trust. In addition, Chainlink announced its Staking v0.2 plan, scheduled to launch in early December. Meanwhile, ADA has performed well in November, with a gain of 26.1%. Cardano's 2023 summit will be a key event, highlighting the project's ongoing development and future prospects.

DOGE has maintained its growth momentum since October, achieving a growth rate of 15.7%. TON has broken free from its stagnant state in October, rising by 14.5% that month. ETH continues to maintain its deflationary state.

BTC, TRX, and XRP all saw moderate growth, with increases of 9.7%, 8.3%, and 5.3%, respectively, for the month. It is worth noting that the Chicago Mercantile Exchange (CME) ranked first and became one of the largest Bitcoin futures trading platforms in the world in November. Given CME's position as a major trading venue for large institutions, this indicates a growing demand for Bitcoin among institutions. BNB, on the other hand, saw a slight decline of 0.4%.

1) DeFi Performance

TVL Shares

In November, the DeFi industry continued to expand with a 10% increase in TVL compared to the previous month, continuing the upward trend since October. This growth is consistent with the overall market sentiment and the sustained rise in token prices. Among the top ten DeFi platforms, Solana leads with a 56% increase in TVL, followed by Optimism at 17% and Avalanche at 16%. Solana's growth is mainly due to the betting protocols Marinade and Jito, with TVL growth of over 79% and 130%, respectively. Avalanche's TVL growth is attributed to Benqi, a currency market and betting platform, with a monthly TVL growth of 62%. In contrast, Tron and Base experienced a downward trend in TVL, with decreases of 4% and 2%, respectively.

2) NFT Performance

NFT Monthly Trading Volume

In November, the NFT market saw a significant turning point, ending a year-long decline with sales reaching $910 million. This represents a 200% increase month-over-month, the largest increase in 2023. Reports from Nansen's NFT 500 index and Blue Chip 10 index show that the decline this year has slowed down, with drops of 49% and 43%, respectively, compared to last month's 58% and 50%. Bitcoin NFTs have been the main driver of the NFT sales recovery.

The SATS series presents amazing performance with its unique single satoshis identifier, achieving a monthly growth rate of 1039% in sales, surpassing Bored Ape Club's $42 million and CryptoPunks' $29 million.

2、Key Summary Charts

1) Bitcoin fees exceed Ethereum fees

The average transaction fee of Bitcoin has exceeded that of Ethereum.

In history, the transaction fees of Ethereum were usually higher than Bitcoin, which is not surprising because the transaction activity and complexity of Bitcoin are usually lower than Ethereum.

However, an interesting phenomenon occurred in November. The average transaction fee of Bitcoin exceeded that of Ethereum, with Ethereum only reaching two-thirds of Bitcoin's fee. This gap reached a high of $6.73 on November 22, the highest point in two years. However, this gap has gradually narrowed.