Market Analysis

Crypto Market Surge in November: Bitcoin Dominance Falls as Ethereum and XRP Soar

Amos Simanungkalit · 03 Dec 2024194.6K Views

Bitcoin (BTC), Ethereum (ETH), and XRP experienced substantial price increases in November, driven by a surge in the overall cryptocurrency market capitalization, which grew from $2.5 trillion to $3.6 trillion during the month.

November proved to be a dynamic period for the crypto market, fueled by regulatory successes and renewed optimism for assets like Bitcoin, which saw a 40% rise. Bitcoin’s price surge was notably influenced by the US presidential election, which brought pro-crypto candidate Donald Trump back into office. A significant portion of Bitcoin’s growth was attributed to inflows in spot BTC exchange-traded funds (ETFs), which saw $6.4 billion in net inflows, primarily driven by BlackRock's IBIT, contributing over $5 billion.

In November, the overall crypto market capitalization surged to nearly $3.6 trillion, up from $2.5 trillion in October. Bitcoin and Ethereum, the two leading assets, outperformed the US stock market in year-to-date returns, reflecting Bitcoin's growing presence in traditional investment markets and its appeal as an inflation hedge. Despite Bitcoin’s dominance dropping from 61.7% in October to 57.4% in November, indicating a rise in altcoin interest, the market remained predominantly driven by Bitcoin and Ethereum.

While Bitcoin's dominance slipped, altcoins like Ethereum, Ripple (XRP), and Solana (SOL) experienced significant gains. XRP, in particular, saw a remarkable 400% rally, boosting its market capitalization to $155 billion and surpassing Solana and Tether to become the third-largest crypto asset. This rise was driven by renewed investor optimism following Trump's victory and Gary Gensler’s announcement of his resignation as SEC Chair.

Ethereum also had a strong performance, rallying 46% in November and seeing a 4% increase in its total value locked (TVL) in the decentralized finance (DeFi) ecosystem. Solana registered impressive gains as well, reaching a new all-time high of $263, driven by a 35% monthly performance and an increase in decentralized exchange activity, particularly from meme coin trading.