Research Summary
The report provides a comprehensive overview of the cryptocurrency market in December 2023. It covers key aspects such as market overview, liquidity, derivatives, top performers, stablecoin flows, DeFi, Layer 1 & Layer 2 overview, NFT market update, and fundraising analysis. The report mentions several cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), TerraClassicUSD (USTC), SuperVerse (SUPER), Echelon Prime (PRIME), Illuvium (IVL), and others.
Key Takeaways
Market Overview and Liquidity
- Total Crypto Market Cap: The total crypto market cap reached $1.42 trillion at the end of November, representing a 13.28% MoM increase. The market activities and the spot market trade volume have both increased to a healthy level, similar to April/May this year.
- Bitcoin and Ethereum Performance: Bitcoin (BTC) has continued to gain steadily after breaking the $35,000 level at the start of November. Ethereum (ETH) also broke the $2,000 level on Nov. 9, contributing to the higher trading volumes.
Top Performers and Stablecoin Flows
- Top Performers: The top gainer among Top 200 ranked cryptocurrencies is TerraClassicUSD (USTC). SuperVerse (SUPER) is the second top performer amongst the Top 200 cryptocurrencies.
- Stablecoin Inflows: Stablecoin inflows continue to increase as capital enters the market, with total crypto market cap gaining 11.7% in the month of November. This reflects the view held by some analysts that the decline in stablecoins market cap has bottomed out.
DeFi and Layer 1 & Layer 2 Overview
- DeFi: DEX volume this month has declined about 18.3% MoM, with Curve Finance gaining back some volume momentum towards the end of the month. Lending TVLs increased to over $18.36 billion.
- Layer 1 & Layer 2 Overview: Ethereum generated the most revenue this month with $198.8 million. Solana and Tron have both experienced large increases in network activities this month.
NFT Market Update and Fundraising Analysis
- NFT Market Update: Total NFT sales volume for November reached $1,020,914,300, a 129% increase MoM. Trading volume on Bitcoin surpassed Ethereum for the first time in November.
- Fundraising Analysis: Fundraising in November hit 1.05B, a significant increase from last month by more than 2x MoM while signifying a growing trend from the past 3 months.
Actionable Insights
- Monitor Market Trends: The report indicates a healthy increase in the total crypto market cap and spot market trade volume. It’s crucial to keep an eye on these trends for a better understanding of the market dynamics.
- Track Top Performers: TerraClassicUSD (USTC) and SuperVerse (SUPER) have shown significant performance among the top 200 cryptocurrencies. Monitoring these and other top performers can provide insights into potential market movements.
- Understand Stablecoin Flows: The increase in stablecoin inflows signifies growing capital entering the market. Understanding these flows can help in assessing market sentiment and potential investment trends.
- Assess DeFi and Layer 1 & Layer 2 Developments: The report highlights key developments in DeFi, Layer 1, and Layer 2 networks. Keeping abreast of these developments can provide insights into potential growth areas in the crypto market.
- Explore NFT Market and Fundraising Trends: The surge in NFT sales volume and fundraising activities indicates growing interest in these areas. Exploring these trends can provide valuable insights into potential growth opportunities.
