This month, we’ve seen the total market cap of cryptocurrency rise to a value just shy of $400 billion. With the valuation outstripping other traditional asset class such as gold and stocks, this could be an indication that blockchain-based markets are set for more growth in 2018.
The “cryptoslate sectors” is a cryptocurrency market report that was released on November. The report includes information about the top cryptocurrencies and their respective market caps.
DeFi’s Total Value Locked (TVL) hit a new high of $288 billion in November, up 32.7 percent month over month, as Bitcoin and Ethereum eclipsed prior all-time highs.
Despite the fact that NFT trading activity has reduced, the sector’s fundraising has not been hampered.
BTC and ETH both reached new highs.
ETH Price and Trading Volume Trends Using Footprint Analytics
On Nov. 8, the price of Bitcoin surpassed $67,670, a 25% monthly rise, increasing its market capitalization to $1.28 trillion. The BTC price has fallen back to May levels as of Nov. 30, with total coin price swings staying between $50,000 and $60,000.
The initial Taproot update, which promises to improve the Bitcoin protocol by increasing anonymity, enabling smart contract capability, and processing complicated transactions at a reduced cost, led to BTC’s first all-time high. These are significant developments and critical elements that have a direct impact on the price of BTC.
Etheruem’s price climbed to a new high of $4,800 on November 8 and has maintained over $4,000 as of this writing. This increase is due not just to the release of Etheruem 2.0, but also to Layer-2 features that provide users and projects with a better experience, more efficiency, and cheaper gas expenses.
The circulating quantity of ETH has been constrained as a result of the transition from POW to POS and the development of automated destruction, resulting in ETH scarcity and a natural price increase.
The TVL of DeFi reaches $288 billion.
DeFi TVL Footprint Analysis
DeFi’s TVL has increased dramatically during October, hitting an all-time high on November 9. Within DeFi, the battle for TVL supremacy has grown more intense among chains and projects.
Here are a few highlights from November:
The birth of DeFi 2.0 as a concept with the goal of addressing difficulties such as inefficient financing and selling pressure.
Acala, a DeFi platform, won the inaugural Polkadot parachains auction, allowing for cross-chain data interchange.
The completion of the EVM equivalency update for Optimism, the Etheruem Layer2 scaling solution, streamlines the development process and lowers transaction costs for developers.
In DeFi TVL, the blockchains Avalanche, Solana, and Terra all hit new highs.
Convex overtakes Aave to grab third place in DEX, with Curve leading the way.
Protocol TVL Rankings based on Footprint Analytics (since 31 Nov 2021)
On Nov. 30, Convex Finance ($16.27 billion) surpassed Yearn Finance ($6.06 billion) as the top yield project in terms of TVL ($6.06 billion). It has already surpassed Aave ($15.72 billion) as the third-largest DeFi project.
What drew so many people to Convex Finance?
With a one-stop platform for CRV pledging and liquidity mining, Convex hopes to improve on Curve’s UX problems. Its goal is to make locking and pledging CRVs on Curve as simple as possible using CVX tokens, as well as to support the CRV ecosystem’s development by improving remuneration for CRV holders and liquidity providers. One of DeFi 2.0’s primary characteristics is its new economic model.
With $21.5 billion in TVL, Curve continues to top the DEX category. It has positioned itself as a decentralized exchange particularly created for stablecoins from its start, addressing the problem of high slippage in the AMM model as well as expensive gas costs, which will definitely be included in when utilizing stablecoins, and therefore gaining traction with investors.
Multi-chain competition is fierce.
Changes in Market Share by Public Chain (Footprint Analytics)
In November, other blockchains gradually divided the market share of Etheruem and BSC, with slow growth in Ethereum and a decrease in BSC (Ethereum TVL: $181.74 billion in November compared to $164.55 billion in October, an increase of 10.4 percent; BSC TVL: $20.37 billion in November compared to $20.83 billion in October, an increase of -2.2 percent).
Footprint Analytics: Chains’ Top 5 TVL Growth Rates
Avalanche has been one of the fastest-growing chains in the previous 30 days, with TVL increasing by 65 percent from $8.63 billion in October to $14.2 billion in November, placing fourth in TVL. Its growth in liquidity mining operations, increasing incentives, and EVM compatibility have all contributed to its success.
NFT trading volumes plummeted by further 27% in November.
According to Footprint Analytics, the popularity of the crypto market has shifted from DeFi to NFT since July, with NFT’s trading volume peaking in August ($5.5 billion) and totaling US$19 billion this year.
NFT Top 30 Volume 7D Change Rate Footprint Analytics
However, compared to October, trading volumes decreased again in November, falling from $3.3 billion to $2.4 billion, a decrease of -27%, owing to reductions in certain large Ethereum NFT platforms, such as CryptoPunks (-3.5%), Axie Infinity (-15%), and The Sandbox (-15%). (-41 percent ).
NFT collectibles are still popular, accounting for 68 percent of the market.
Footprint Analytics: NFT Volume Market Share by Category
Despite a drop in trading volume, collectibles still account for 68 percent of the NFT market, with art and gaming accounting for 16 percent and 7.3 percent, respectively. It’s no wonder, therefore, that trade volumes for CryptoPunks collectibles, the most well-known NFT collection, have slowed. The DeFi ecosystem, for example, is always upgrading and iterating to provide better and better models to both projects and consumers, thus the NFT market is in desperate need of a fresher, more interesting project to help revive the industry.
DeFi and NFT are being pursued by major investment firms.
Funding-Monthly Investment by Category Footprint Analytics
NFTs and DeFi have become attractive capital investment vehicles. According to Footprint Analytics, DeFi surpassed NFTs as the most popular investing strategy in November. One reason is that DeFi is evolving into DeFi 2.0, improving capital efficiency and lowering gas costs, which are now a source of pain for investors.
Seed round investments dominated fundraising in 2021, accounting for 60% of the total. The worldwide blockchain market is still in its early stages of investment, with new sorts of initiatives of all kinds blooming all the time.
Different investment focuses, with AU21 having the most investments.
Funding-Number of Projects by Investor and Category (Footprint Analytics)
AU21 Capital, a fund devoted to assisting the most brilliant individuals in the blockchain industry, is now the biggest investor, according to Footprint Analytics, with 119 investments. Early-stage venture capital, first token sales, and seed investments are among its core operations.
This month, the crypto market has experienced unprecedented growth across all sectors, with BTC and ETH reaching new highs and DeFi breaking new records, giving most investors and consumers renewed optimism. In decentralized finance, Ethereum and BSC continue to be important, and Avalanche isn’t far behind. Solana and Terra are likewise improving all the time.
The drop in NFT monthly trading volume does not mean the market is doomed; rather, it indicates that the market is waiting for a catalyst to re-ignite activity.
Review of November’s Major Events:
News and Policy:
Physical asset-based NFT app games are prohibited in South Korea, according to the regulator.
Finland tightens its grip on virtual currency.
KurePay, a Nigerian payment service, will cease operations owing to the government’s crackdown on cryptocurrencies.
Continuing in-depth research of the possible function of central bank digital currencies in enabling cross-border payments is encouraged at the G20 summit.
Without official authorisation, India may prohibit the listing and trade of cryptocurrencies.
Senators will propose an encryption amendment to Vice President Biden’s infrastructure plan.
In Singapore, the Asian Blockchain Gaming Consortium was established.
SportsIcon, an NFT sports platform, has raised $5.5 million in initial investment.
Blockade Games, a blockchain game developer, has completed a $5 million round of fundraising.
Avocado Guild has raised $18 million in Series A investment, with Animoca Brands leading the way.
Snapshot Labs, a DAO voting platform, has closed a $4 million fundraising round.
In 2022, Open Meta will officially launch the Open Meta DAO after raising $4.5 million.
Create a social layer on the web using Web3’s social layer builder. Mem A16z leads a $3.1 million fundraising round for Protocol.
Sea Capital and Kora Management led a $725 million Series B investment deal for blockchain gaming infrastructure provider Forte.
Magnetar Capital has closed a $50 million investment round for Ethereum miner CoreWeave.
LD Capital has launched the ‘Meta Fund,’ a $100 million Metaverse ecosystem fund.
The Avalanche chain’s DeFi Total Value Locked reached a new high of $13 billion.
On Etheruem, stablecoin circulation has surpassed $95 billion.
Moonbeam wins Polkadot’s second Parachain slot and receives a 50% boost in its crowdfunding incentive.
Boba Network has surpassed $1 billion in TVL and has moved up to second place in TVL for Layer2 solutions.
Since Etheruem implemented EIP-1559, 56 percent of all freshly created ETH has been destroyed by the base fee.
For the eighth time in a row, the Bitcoin network difficulty has risen to 22.67T.
The Solana chain’s total DeFi TVL crosses $15 billion, a new level.
The overall market capitalization of crypto assets tied to the metaverse reaches $48 billion.
The overall market value of NFT game passes in the play-as-you-earn class has surpassed $35 billion, a new high.
Total NFT on-chain sales have surpassed $15 billion, which is a new high.
NFT passes have a total market value of more than $60 billion, with $30 billion in the “Play-to-Earn” category setting a new high.
Google searches for NFT are at an all-time high.
The average daily pay of Axie Infinity players falls below the Philippine minimum wage.
Beeple’s Discord has been hacked, and a fraudulent NFT airdrop has caused users to lose about 38 ETH.
Beeple’s latest NFT artwork is the second most expensive NFT ever, selling for approximately $29 million in ETH.
The overall trade volume on the NFT marketplace OpenSea has reached $10 billion.
Acala, a DeFi platform, has won the first parachain position at Polkadot.
Coinbase is thinking about allowing third-party DeFi applications to run on its platform.
Valkyrie has announced the creation of a $100 million “On-Chain DeFi Fund.”
Cream Finance would provide more than 1.45 million CREAMs to victims of the incident.
Parallel’s Auction Loan product TVL crosses $300 million in the Polkadot ecosystem DeFi initiative.
Uniswap V3 automated liquidity procedures do not outperform traditional LPs in terms of returns.
The market value of the Top 100 DeFi passes has surpassed $170 billion, setting a new high.
Total DeFi TVL has surpassed $250 billion, a new high.
This year, $680 million has been stolen in DeFi assaults.
Click on the Footprint link for further project dashboards and analysis, as well as other data developments and material from the DeFi ecosystem.
The following material is only a personal opinion, and it is not intended to be used as financial advice. Feedback is requested if there are evident flaws in understanding or data.
Footprint Analytics is the source of this report.
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What are defi tokens? Defi Tokens are the native currency of the DeFi ecosystem, which is a decentralized financial system. It is used to pay for services and transactions on the platform. Reference: what are defi tokens.