Cryptocurrency’s Dynamic Shift: Navigating the Winds of Change in November 2023.
Author: Lewis William
Date: November 20, 2023
Category: Crypto Insights
Hello, Triangle Profits community! In today’s piece, we’re zooming into the vibrant world of cryptocurrencies. As we look back at October and gaze into the future of November 2023, it’s clear that the crypto market is brimming with activities worth our undivided attention.
The Big Picture: Market Capitalization and Bitcoin’s Role
October was a remarkable month for cryptocurrencies, with the total market capitalization swelling by 19% from $1.08T to $1.28T. This surge was largely driven by Bitcoin’s rally to $35,000, marking its highest point since May 2022.
Investor Sentiment: A Swing Towards Greed
The Crypto Fear & Greed Index transitioned from neutral to greed, indicating a bullish outlook among investors. This sentiment was fuelled by optimism regarding the potential approval of a spot Bitcoin ETF by the U.S. SEC, despite the earlier misreported approval of BlackRock’s ETF application.
Trading Volume and Open Interest
A spike in liquidity was observed with the trading volume nearing a staggering $100B, signifying heightened speculative interest. Furthermore, BTC open interest saw a 28% rise in October, with futures funding rates turning positive, hinting at a strong bullish sentiment in the market.
Top Performers: Injective and Others
Injective (INJ) emerged as a top performer in the large-cap category, with a year-to-date gain of over 952%. Other notable cryptocurrencies include Neo (NEO), which announced the development of an EVM-compatible, MEV-free sidechain, and Solana (SOL), which experienced a rally despite significant holdings in the FTX estate.
Stablecoin Dynamics
The stablecoin market cap reached a new high, with USDT’s market cap hitting an all-time high of $85.46B. This growth reflects a bullish outlook by investors, with USDT extending its market share to nearly 69%.
DeFi and TVL Growth
The total value locked (TVL) in DeFi grew by 9.3%, attributed to the increase in Bitcoin’s price. Just Lend surpassed both Aave and Maker to take the top spot with the highest TVL, signifying the momentum gained by blue-chip protocols.
Layer 1 and Layer 2 Overview
Wemix and Gnosis led the market cap gain and TVL among Layer 1 blockchains. In the Layer 2 space, Arbitrum extended its lead in TVL following the launch of the Arbitrum Odyssey and Orbit programs.
NFT Market Trends
The NFT market experienced a surge in trading volume by 87%. Bored Ape Yacht Club (BAYC) saw significant growth in sales volume, while The Captainz experienced the most notable surge. This indicates a healthy interest in NFTs despite the broader market volatility.
Venture Capital in Crypto
VC investments in the crypto space totalled $428.16 million in October, reflecting a preference for early-stage investments. Blockchain Service and DeFi were the most heavily invested categories, highlighting the continued interest in these sectors.
Conclusion
As we sail through the uncharted waters of the cryptocurrency market, it’s evident that changes are afoot. With Bitcoin leading the charge and altcoins showing promising growth, the market is ripe with opportunities and challenges. Stay tuned with Triangle Profits for more insightful analysis into this ever-evolving domain.