KuCoin Research Monthly Crypto Market Recap, Highlighting Historic Stablecoin Inflow and Bullish Sentiment (December 2023)
The cryptocurrency market in November 2023 witnessed a flurry of activity, with Bitcoin leading the charge amidst a generally bullish market sentiment. The Fear and Greed Index reached new heights, reflecting a positive outlook on the industry. This monthly report, compiled by KuCoin Research, delves into the key trends, project updates, investment activities, and regulatory developments that shaped the crypto space during the month.
Market Sentiment and Altcoins
The month saw a continuation of the bullish trend that began in mid-October. Institutional investors, including asset managers and hedge funds, adopted a long position on Bitcoin, which contributed to the cryptocurrency's price surge above $38,000. This sentiment also extended to altcoins, with a clear differentiation emerging among various sectors. BRC-20 tokens, AI-related projects, and POW coins experienced heightened interest, while older concepts and established coins faced a lull in excitement.
The open interest of BTC options on exchanges (including CME) has reached a historical high
Data source: CoinGlass, As of November 30, 2023
Stablecoins and Public Chains
USDT continued to break records, reaching an all-time high in issuance. Despite regulatory challenges faced by TUSD and BUSD, the overall supply of stablecoins expanded. Ethereum's Layer 2 solutions saw an increase in total value locked (TVL), with notable growth in StarkNet and other platforms. Avalanche and Solana also experienced gains, while Tron's TVL declined due to a high-profile security incident.
The issuance of USDT in the past six months has shown a highly positive correlation with the price of BTC
Data source: Glassnode, As of December 4, 2023
Top Projects and Ecosystem Updates
The report highlights significant developments from top projects. StarkNet's airdrop eligibility criteria were established, with the official airdrop expected early next year. This anticipation contributed to the growth of StarkNet's user base and TVL. Avalanche's collaboration with JPMorgan Chase to develop Real-World Asset business further validated its position in the industry. Bitcoin Ordinals saw a resurgence with the Unisat wallet upgrade, leading to increased activity on the BTC network.
On October 24th, transaction volume of BRC-20 tokens suddenly surged, reaching peak around November 18th. Transactions of BRC-20 tokens surged again in early December, spurred by ORDI's explosive rally.
Data Source：Dune Analytics, As of November 30, 2023
Investment and Financing Trends
The investment landscape in November was characterized by a robust recovery, with both the number and size of deals reaching new highs. Seed rounds remained dominant, with a significant portion of projects securing funding in the range of $1 million to $10 million. Leading institutions, such as a16z and Coinbase Ventures, showed a preference for infrastructure and social entertainment projects. The Base Ecosystem Fund emerged as the most active investor, reflecting the growing interest in Ethereum Layer 2 solutions.
Data Source: RootData, As of November 30, 2023
Regulatory Policies and Market Impact
Regulatory clarity continued to be a key theme, with Binance resolving issues with U.S. authorities by paying a substantial fine. This resolution was seen as a positive step towards compliance and may influence the approval of a Bitcoin spot ETF. South Korea established a special agency to oversee virtual assets, highlighting Asia's focus on consumer protection in crypto regulation.
Conclusion
November 2023 was a month of growth and transition for the cryptocurrency market. The industry experienced a resurgence of interest, with new projects and technologies capturing the attention of investors and users alike. The regulatory environment is also evolving, with a focus on ensuring market integrity and protecting investors. As we move forward, the cryptocurrency market is likely to see further consolidation and growth, driven by innovative projects and a more mature regulatory framework.
Read the full report here.
About KuCoin Research
KuCoin Research is a leading provider of research and analysis in the cryptocurrency industry. With a team of experienced analysts and researchers, KuCoin Research aims to deliver high-quality insights and reports to empower investors and industry professionals.
Disclaimer:
The information provided in this report is for informational purposes only and should not be considered financial advice. It is important for readers to conduct their own research and consult with a financial advisor before making any investment decisions. The report is prepared based on the best information available at the time of writing, and the accuracy and completeness of the information cannot be guaranteed.