The ramifications of the U.S. presidential election have reverberated throughout the cryptocurrency sphere, instilling a sense of positivity among stakeholders.
Following the emergence of Donald Trump as the 47th President of the United States, the digital asset market has witnessed a remarkable resurgence.
Throughout November, the overall market capitalization skyrocketed by an impressive $1 trillion, ascending from $2.2 trillion at the onset of the month to an astounding $3.2 trillion by month-end, according to data from CoinMarketCap.
Observing this meteoric rise, several experts are drawing parallels to previous bullish cycles, underscoring this recovery as one of the most notable in recent times.
This surge echoes the heights reached by the market in 2021, fueled by speculative investments and optimism induced by stimuli.
In reference to this surge, the cryptocurrency exchange platform OKX took to social media and remarked,
“In case you missed it: The cryptocurrency market’s total capitalization surged by over $1 trillion in November.”
The company posed a captivating question, pondering,
“What does December hold in store?”
Drivers Behind the Surge in Crypto Market Valuation
The recent upsurge has not only been limited to Bitcoin’s trajectory toward the $100,000 milestone but has spanned the broader cryptocurrency landscape.
Significantly, there has been a noticeable uptick in institutional interest, with hedge funds, asset management institutions, and corporations actively participating in market dynamics.
Stablecoins such as Tether (USDT) and USD Coin (USDC) have continued to play a crucial role in ensuring liquidity and stabilizing the volatile market conditions.
Meanwhile, alternative coins like Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) have witnessed varied levels of growth, collectively driving the market’s expansion.
Remarkably, Ripple’s XRP emerged as a standout performer, surging nearly 300% in November to reach a market capitalization of $110 billion.
This rapid surge pushed XRP past Binance Coin (BNB), consolidating its position as the fifth most significant digital asset.
Bitcoin’s Dominance Maintained
Bitcoin (BTC) and Ethereum (ETH), the top two cryptocurrencies based on market capitalization, played an integral role in the extraordinary market growth observed in November.
Bitcoin, often perceived as a safe asset haven, registered considerable gains in both price and trading volume, reaffirming its dominance.
On the other hand, Ethereum, supported by network innovations and heightened interest in decentralized applications, also witnessed significant upward momentum.
Collectively, these prominent digital currencies contributed significantly to the $1 trillion surge in market capitalization, with BTC alone retaining over 50% market domination throughout the month.
However, November was not devoid of challenges.
Web3 cybersecurity company Peckshield reported that cyber incidents involving cryptocurrencies in November led to losses amounting to $85.5 million, pushing the annual loss total to a staggering $2.43 billion.
Despite over 30 reported security breaches during the month, November’s losses were marginally lower than the $102.42 million recorded in October.