BTC Collapses, Coinbase Launches NFT Marketplace…

BTC Collapses, Coinbase Launches NFT Marketplace… post thumbnail image

Bloomchain has prepared a cryptocurrency market review for November

SUMMARY

  • The cryptocurrency market volume was $2.6 trillion, with no growth in November. Bitcoin network undergoes major Taproot update, major cryptocurrency cap is down 9% in month.

  • The NFT marketplace that Coinbase plans to launch has attracted 25 million users. The crypto exchange also aims to integrate with third-party DeFi apps. However, share prices fell amid the company’s unsuccessful reports.

  • USDC’s share in the stablecoin’s total capitalization is close to 30%. Despite the success, its publisher, Circle, plans to launch a similar instrument based on the Japanese yen.

  • The cryptocurrency exchange Binance will raise money from government funds. At the same time, the US division plans to close its pre-IPO investment round within one to two months.

Market dynamics

Over the past month (from October 25 to November 25), the market cap of cryptocurrencies has hardly changed. It currently stands at $2.6 trillion, according to Coinmarketcap. Bitcoin occupies a 42% share of the total market volume (the indicator at the beginning of the year was almost 70%). In mid-November, a major update of the major cryptocurrency network, Taproot, took place. It is designed to increase transaction anonymity and smart contract flexibility, as well as reduce fee size through Schnorr signature recognition.

Cryptocurrency market cap. Source: CoinMarketCap

NFT

For the incomplete November, trading volume on the NFT market totaled $1.5 billion, according to The Block. The largest platform is OpenSea, accounting for 98% of the turnover.

NFT trading volume by month. Source: Blok

Amid the general interest in the non-exchangeable token market, Huobi announced the launch of the NFT marketplace in test mode – the company announced that it would become an important part of the metaverse.

Similar news came from cryptocurrency exchange Coinbase. By mid-November, the company had received 25 million applications for the project. According to the plan, the market launch should take place in a quarter or two. The head of Coinbase also said that the scale of the new direction could extend beyond the crypto business. In addition, the crypto exchange aims for integration with third-party DeFi applications. However, despite the grand plan, the company’s shares fell after the release of its failed third-quarter financial report.

Coinbase stock quotes. Source: Investment

In South Korea, controversy continues over the non-exchangeable status of tokens. From October 1, some of the income from transactions with virtual assets in the country is subject to a 20% tax, but it is not yet clear whether NFTs will be classified as such.

DeFi

The amount of Ethereum-based funds blocked on DeFi is $113 billion, according to The Block. This is 6% higher than the previous month. The largest categories remain loans and decentralized exchanges, accounting for 46% and 41%, respectively. Square announced a decentralized exchange project and the tbDEX protocol. Transaction fees on the platform will depend on the level of data disclosure by exchange participants – the fees will decrease as the amount of data increases.

Ethereum Funds Blocked on DeFi by Category. Source: Blok

The amount of funds blocked on DeFi based on Binance Smart Chain is almost a quarter of that based on Ethereum and equals $26 billion, according to Defistation. It’s almost the same as a month ago.

DeFi Locked Fund Based on Binance Smart Chain. Source: Blok

stablecoin

The trading volume of all stablecoins per day is around $87 billion, or nearly 80% of the total cryptocurrency turnover, according to Coinmarketcap data as of Nov. 29. The top 10 tokens in terms of capitalization include two stable cryptocurrencies – USDT and USDC.

Since the start of the year, Tether’s dominance in the stablecoin market has decreased by 20 pp, and its share is 55%, according to The Block. USDC’s share, on the other hand, increased by 13 p.m., by 27%. Circle, the issuer of USDC, plans to issue stablecoins based on the Japanese yen, according to Bloomberg. The attractiveness of the instrument is determined, among other things, by the possibility of making a profit through the Circle Yield service. Currently, the interest is 6.75% with a year’s investment.

Token supply distribution by major stablecoins. Source: Blok

At the same time, the US presidential administration is proposing to regulate federal oversight of stablecoins. Organizations are concerned about the negative impact of these instruments on traditional financial systems. The initiative also implies oversight of organizations that provide custodial services in the cryptocurrency market, and limits partnerships between stablecoin issuers and non-financial organizations.

Binance

Binance US plans to close an investment round of several hundred million dollars in the one to two months before the IPO. Previous attempts were unsuccessful due to regulatory pressure on the parent company. At the same time, Binance will raise funds from the government funds of undisclosed countries.

More than half of the trading volume of rated B, A, AA pairs is concentrated on these cryptocurrency exchanges, according to CryptoCompare as of November 29.

Trading volume for pairs (rated B, A, AA) on the largest exchanges. Source: CryptoCompare

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