The outcome of the U.S. presidential election has had a significant impact on the cryptocurrency market, sparking optimism among investors.
Following the election of Donald Trump as the 47th President of the United States, the crypto market has experienced a remarkable resurgence.
In November, the total market capitalization surged by more than $1 trillion, rising from $2.2 trillion at the beginning of the month to an impressive $3.2 trillion by the end, according to CoinMarketCap.
Analysts are drawing parallels to past bullish cycles, characterizing this surge as one of the most significant recoveries in recent memory.
This growth mirrors the market’s peak in 2021, fueled by speculative investments and optimism stemming from stimulus measures.
OKX, a crypto exchange platform, highlighted this milestone by stating on X (formerly Twitter),
“ICYMI: Total market cap for crypto increased by over $1 Trillion in November.”
The platform also posed an intriguing question, asking,
“What can we anticipate in December?”
Factors Behind the Surge in Crypto Market Cap
The recent upsurge has not only been driven by the movement of Bitcoin [BTC] towards the $100,000 mark but has also encompassed the broader cryptocurrency market.
Institutional interest has notably increased, with hedge funds, asset management firms, and corporations playing a more active role in market activities.
Stablecoins such as Tether [USDT] and USD Coin [USDC] have continued to contribute to market liquidity and stabilize volatility.
Altcoins like Solana [SOL], Cardano [ADA], and Dogecoin [DOGE] have shown varying levels of growth, collectively driving the market’s expansion.
Particularly, Ripple’s [XRP] performance stood out, surging by almost 300% in November and reaching a market capitalization of $110 billion.
This rapid progression propelled XRP ahead of Binance Coin [BNB], consolidating its position as the fifth-largest cryptocurrency.
Bitcoin Maintains Its Dominance
Bitcoin [BTC] and Ethereum [ETH], the two primary cryptocurrencies by market capitalization, played a crucial role in the significant market growth seen in November.
Bitcoin, renowned as a safe-haven asset, recorded substantial gains in both price and trading volume, reaffirming its dominance.
Meanwhile, ETH, supported by network developments and the increasing interest in decentralized applications, also observed notable upward movement.
Collectively, these key cryptocurrencies contributed considerably to the $1 trillion surge in market capitalization, with BTC alone sustaining over 50% dominance throughout the month.
Despite the impressive performance, November did pose challenges.
Web3 security company Peckshield reported that crypto-related crimes in November led to losses amounting to $85.5 million, pushing the total losses for the year to a whopping $2.43 billion.
Although there were over 30 reported hacks during the month, the losses in November showed a decrease compared to October’s $102.42 million.