Donald Trump

DeFi

The crypto market hit new records this week as Donald Trump announced pro-crypto advocate <a href="https://yellow.com/news/what-paul-atkinss-potential-sec-role-means-for-crypto-experts-weigh-in">Paul Atkins</a> as the new SEC Chair. While the trading volume touched $10 trillion, the market cap reached $3.8 trillion, and DeFi hit a $135 billion market cap. All this has caused Bitcoin (<a href="https://yellow.com/asset/btc">BTC</a>) to reach new heights at $104,000. 
<h2 id="crypto-trading-volume-at-10-trillion">Crypto trading volume at $10 trillion</h2> 
The unprecedented feat of $10 trillion <a href="https://beincrypto.com/ccdata-centralized-exchange-10-trillion/">crypto trading volume</a> in centralized and derivatives exchanges for the first time in history shows the strength of the market and how it has matured over the years. 
CCData which first reported the spike revealed that it's a 100% increase from last month’s trading volume as the market regained faith and optimism following Trump’s victory in the US presidential election. The bellwether of the crypto market, Bitcoin made a whopping 38% gain during this time as it touched $100,000 
CCData research analyst Jacob Joseph said that the market’s sentiment “is evident in the increased appetite for assets like Ripple, which has historically faced heightened regulatory scrutiny.” 
Joseph further explained how the role of “Optimism is also evident on the institutional side, with CME volumes seeing a significant uptick and substantial inflows into spot Bitcoin ETFs over the past month”. 
While spot trading volumes for November rose 128% to reach $3.43 trillion in the centralised exchanges, derivatives trading jumped 89% to touch $6.99 trillion. This phenomenal spike in spot trading volume is the second-highest since May 2021 while the derivates spike made it cross the March record. 
<h2 id="crypto-exchanges-etfs-reach-new-milestones">Crypto exchanges, ETFs reach new milestones</h2> 
South Korean crypto exchange Upbit witnessed a rise in altcoin trading activity which was also seen in CME recording an 83% spike in trading volume as it hit the ATH of $245 billion. 
November was the month when crypto exchanges like Bullish, Gate.io, Crypto.com and Bybit recorded the highest trading volumes ever courtesy of Donald Trump winning the US election. Both retail and institutional investors equally benefitted from this as the broader crypto market transformed. 
Trump’s win also acted as a catalyst boosting the crypto trading desk, Galaxy Digital’s shares jumped by 25% on November 5, which appeared to be the best trading day of the year. 
The optimistic outlook from Trump’s victory also led to a boom in spot ETFs with institutional products like Bitcoin ETFs gaining traction. Market opportunities increased for options contracts linked to Bitcoin ETFs introduced by Nasdaq and NYSE after the SEC approved them in September. 
BlackRock’s Bitcoin ETF made its entry with $2 billion exposure on November 18 and it accelerated institutional adoption and created new avenues for Bitcoin holders. 
<h2 id="market-cap-at-3-83t-as-btc-and-altcoin-hits-new-record">Market Cap at $3.83T as BTC and Altcoin hits new record</h2> 
Amidst this, the <a href="https://cryptopotato.com/total-crypto-market-cap-tops-3-8-trillion-in-record-high/">global crypto market cap</a> hit a new all-time high at $3.83 trillion as it surged 2.7% which was propelled by Trump’s win in the US election followed by the selection of Paul Atkins as the SEC chair yesterday. 
On November 5, the market cap touched $1.5 trillion after a 63% monthly gain due to the US presidential election, and now it has doubled in a month. 
Most of it can be attributed to Bitcoin’s iconic $100K rally which resulted in the crypto market cap rising 24% from its 2021 bullish market peak when it was $3.08 trillion. If we compare it with previous years, it is 270% higher than the 2017 market cap of $830 billion. Analysts have predicted a similar market cap surge in the 2025 bullish cycle when it is likely to hit $11 trillion. 
At present, the crypto market accounts for 21% of the gold market cap which is valued at $17.9 trillion. Bitcoin’s rally to $104000 caused the current record of crypto market cap but digital assets have much more to cover. Because of Bitcoin’s dominance claimed 57% of the dip which happened due to altcoin surging in the last 2 weeks, ultimately resulting in the BTC market cap hitting $2 trillion for the first time in history. This made it the 7th largest asset, trailing Alphabet’s $2.1 trillion market cap. 
This has prompted Michael Saylor, the MicroStrategy Founder forecast a $280 trillion BTC market cap by 2045 which translates to $13 million per coin. Meanwhile, traders like Bob Loukas predicted Bitcoin flipping the Gold market cap in 2037. So far, BTC is just 11% of gold’s market cap. 
The altcoin market cap has touched a new ATH at $1.85 trillion, going past the 2021 peak. Ethereum and Stablecoins made up 35% of this while XRP and Solana contributed $130 billion and $110 billion market cap respectively. Although Ethereum hasn’t reclaimed the $4000 barrier yet it reached a $460 billion market cap as it traded at $3900 on December 5. 
<h2 id="defi-market-cap-on-the-rise">DeFi market cap on the rise</h2> 
Meanwhile, the <a href="https://udaipurkiran.in/crypto-market-rallies-as-ethereum-crosses-3-7k-defi-market-hits-135-billion-milestone/#google_vignette">DeFi sector</a> has also seen a surge in market cap which gained 88% since November 6 to hit $135 billion in a month on December 4. This spike in DeFi market cap has been linked to major policy shifts in central banks like the US Federal Reserve’s rate cuts and the European Central Bank (ECB) and the Bank of England (BoE) taking similar steps. 
More investors are resorting to DeFi services to maximise returns as yields are declining in traditional yields, causing a spike in layer-1 DeFi projects like Solana (SOL), BinanceCoin (BNB), Cardano (ADA) and Tron (TRX) which have recorded more than 100% gains. 
Crypto analysts believe that DeFi coins will surge further after fresh rate cuts are announced on December 17 which is also likely to make the broader crypto market rally to new heights.

Finally, a Bull Run We Deserved: BTC, DeFi, Trading Volumes Soar to New ATHs

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