The Surge in Digital Asset Market
The digital asset market witnessed a remarkable 11% growth last month, according to a recent Binance Monthly Market Insight report. This surge in the market was primarily driven by the performance of two leading assets, Solana (SOL) and Chainlink (LINK), as well as the increasing volumes in decentralized finance (DeFi).
The report highlighted that the bullish momentum dominated the market at the beginning of November, with a 12% increase in the first half of the month. Although there was a slight correction, characterized by oscillations between bullish and bearish sentiments, the market managed to gain 19% and 11% in October and November, respectively. This strong finish to the year signaled a recovery from previous months’ losses influenced by wider macroeconomic factors. In fact, the market growth in the last two months almost matched the January surge of 30%, making it an impressive achievement in terms of growth metrics.
The Shift in Transaction Fees
An interesting deviation from the regular pattern was observed, as Bitcoin (BTC) recorded higher transaction fees than Ethereum (ETH) last month. This shift was attributed to the increased network activity on Ethereum, which stemmed from the higher concentration of decentralized applications on the blockchain.
Moreover, the demand for Bitcoin Ordinals, the widely recognized non-fungible token of the market leader, triggered a surge in activities on the Bitcoin network, leading to congestion in the mempool earlier this year. CryptoSlam’s recent data revealed that Ordinal transactions reached their highest point in November, surpassing Ethereum with a staggering $367 million in transactions.
DeFi and Institutional Involvement
The bullish market trend has significantly impacted DeFi volumes, along with the rapid influx of institutional funds into digital asset products. Over the past 30 days, the total value locked (TVL) across DeFi platforms witnessed an impressive 11% surge, with Solana (SOL) showcasing a remarkable 56% increase. Solana has emerged as a favorite among institutional investors, experiencing weeks of record inflows even when altcoin figures were at an all-time low.
Ethereum, the leading altcoin, also experienced an increase in institutional inflow in recent weeks, with its asset price breaking through the $2,000 mark. Other notable DeFi platforms like Optimism and Avalanche also observed gains in TVL, with increases of 17% and 16% respectively.
The Revival of NFT Volumes
Last month marked a significant turnaround for NFT volumes, following a period of plunging figures in previous months. NFT volumes experienced a staggering growth of 200%, reaching $0.91 billion. This revival reflects the renewed interest and activity in the NFT market, highlighting its resilience and potential for future growth.
