The total cryptocurrency market cap saw a big jump of 45% in November, marking its best monthly return ever, according to a report from JPMorgan.
What drove this surge? Well, the reelection of Donald Trump as President sparked a historic rally in the crypto markets. Analysts, led by Kenneth Worthington, pointed out that this growth included various areas of the crypto ecosystem, such as tokens, decentralized finance (DeFi), stablecoins, and publicly traded companies involved in crypto.
In November, the crypto ecosystem achieved its highest monthly return, with the total market cap rising to $3.3 trillion. Trading volumes across the market more than doubled. Some digital assets even saw a bigger increase in trading activity. However, it's worth noting that non-fungible token (NFT) volumes showed some weakness.
The report also highlighted that U.S. spot exchange-traded products (ETPs) tracked by JPMorgan experienced record monthly net sales, totaling around $7.6 billion combined. Bitcoin ETPs grew in both size and trading volume. While these products didn’t significantly impact Bitcoin's spot trading volumes, the overall ecosystem is increasingly focused on Bitcoin.
Bitcoin dominance has been rising for most of the year. However, it has dipped a bit in recent weeks, partly due to the growing popularity of Bitcoin ETPs, which accounted for $105 billion in assets at the end of November.
Mining economics also improved in November. The rally in Bitcoin outpaced the growth in hashrate, which is the computational power that secures the Bitcoin network. This means miners are likely seeing better returns.