Cryptocurrency Exchange Volume Hits Three-year High
Monthly crypto exchange volume reached a three-year high in November, driven by Donald Trump’s victory in the United States presidential election, which raised hopes for more favorable crypto regulations.
Data from crypto market tracker New Hedge revealed that spot crypto exchange volumes hit $2.9 trillion in November, the highest since May 2021.
A spokesperson from Crypto.com described November as its “strongest month in the last year,” with record-high volume levels on the platform.
“As a company and as an industry, we’re seeing increasing interest and investment in cryptocurrencies, which has led to record trading volumes globally over the last few weeks,” they said, and continued:
“We anticipate positive market sentiment will continue into the first quarter of next year.”
They attributed the surge to the election results in the US and the potential for regulatory clarity in the market.
Hundreds of pro-crypto candidates secured congressional seats, with industry leaders predicting that this US government will be the most pro-crypto in history, fostering a more favorable regulatory environment.
Globally, clearer regulatory frameworks for digital assets in various jurisdictions have also contributed to increased investor confidence and trading volumes.
“This has been an important factor in driving global adoption and increasing trading volumes,” they added.
Kraken’s managing director for Australia, Jonathon Miller, told Cointelegraph that the exchange experienced a strong month, particularly in perpetual volume.
“Kraken has experienced a surge in our perpetual contract volumes as a variety of traders have sought leveraged exposure or to hedge risk throughout the post-election market upturn,” Miller said.
Bitcoin perpetuals accounted for the majority of activity, while Solana and Dogecoin perpetuals set new monthly all-time highs.
“While much of this activity has been concentrated in Bitcoin futures, interest in both our Dogecoin and Solana perpetuals has reached new highs, with 24-hour volume for DOGE exceeding that of Ether for the first time.”
Miller noted that both assets have exhibited greater volatility, creating more trading opportunities and benefiting from the recent rally, with Dogecoin leading the memecoin resurgence.
A Binance spokesperson told Cointelegraph that the exchange had “observed more participants entering the crypto space,” possibly influenced by several factors, including the approval of Bitcoin exchange-traded funds (ETFs) in major markets.
In November, a month-long bull run saw spot Bitcoin ETFs accumulate $6.87 billion in inflows, with $411 million in outflows.
The total crypto market cap rose to $3.47 trillion as of Dec. 2, according to CoinMarketCap.
“The introduction of Bitcoin ETF options has made it easier for institutional investors to gain exposure and hedge risks, contributing significantly to the recent rally,” the Binance spokesperson said.
They also highlighted macroeconomic shifts, such as the US Federal Reserve cutting interest rates after a prolonged tightening period, rising global liquidity, and capital inflows into assets perceived as inflation-resistant.
“The prospect of a crypto-friendly Trump administration has injected optimism into the market, with promises to transform the US into a global crypto hub made on the campaign trail,” the Binance spokesperson said.
Sources:
https://cointelegraph.com/news/crypto-exchanges-bumper-trading-volumes-in-november
https://newhedge.io/terminal/bitcoin/monthly-exchange-volume
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