Crypto trading volume fell last month as the market suffered a broad pullback, according to Wall Street bank JPMorgan.
The bank marked a sharp slowdown in stablecoin revenue, with average daily volume down 26% month-on-month, and also significantly weaker decentralized finance (DeFi) and non-fungible tokens (NFT).
Concerns about leverage in the system, talk of a possible new crypto winter and underperformance relative to stocks all weighed on valuations and activity, overshadowing a handful of M&A deals and product launches, analysts led by Kenneth Worthington said in the Tuesday report.
Flows into U.S.-listed crypto products also turned negative, the analysts wrote. U.S. bitcoin spot exchange-traded funds (ETFs) saw $3.4 billion in net outflows in November, wiping out October’s net inflows.
U.S. exchange-traded products recorded their worst month ever, with $1.4 billion in net redemptions, the report noted.
Trading activity also worsened. Total spot volumes fell 19% month-on-month in November, based on CoinDesk data, with TradingView suggesting a similar decline of ~23%, JPMorgan said.
Bitcoins market cap fell 17% to $1.8 trillion, still outperforming ether whose market value fell 22% to $361 billion, the analysts wrote.
Crypto significantly underperformed traditional stock benchmarks, with the S&P 500 flat and the Nasdaq 100 down about 2% last month.
Total crypto market capitalization fell 17% to $3.04 trillion, while crypto-related public stocks lost 21% of their value.
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