November 2024 will be remembered as a landmark month for the cryptocurrency market as crypto exchange volumes reached unprecedented levels. This surge was driven by a mix of market catalysts, including Donald Trump’s presidential election win, improved macroeconomic conditions, bitcoin halving effect, and the heavy inflows into Bitcoin and Ethereum spot exchange-traded funds (ETFs).
Monthly spot market volumes across top cryptocurrency exchanges hit nearly $3T in November 2024
According to data from crypto market tracker New Hedge, spot crypto exchange volumes in November 2024 hit an impressive $2.94 trillion—the highest volume since May 2021. Centralized exchanges like Crypto.com and Binance reported a significant increase in trading activity, attributing it to a positive shift in regulations, rising institutional adoption, and improving macroeconomic conditions.
Of the $2.94 trillion in November’s spot market volumes across top exchanges, Binance led the charge with a total volume of $1.05 trillion, followed by Crypto.com ($278.2 billion), Upbit ($226.66 billion), Bybit ($210.6 billion), Coinbase ($167 billion) and OKX ($165 billion).
Crypto.com revealed November as its strongest month in 2024, with record-high trading volumes on its platform. Similarly, Binance noted an increase in participants entering the crypto space. In a recent statement, a Binance spokesperson attributed the growth to factors such as the approval of spot crypto exchange-traded funds (ETFs) and bullish market sentiments.
Bitcoin ETFs contributed significantly to the trading volume surge. Throughout November, these financial instruments recorded a combined $6.87 billion in inflows while experiencing only $411 million in outflows. This impressive record reflected the growing integration of BTC into traditional financial markets.
Read also: Crypto market cap grows over $1T since U.S. elections.
What’s driving this growth?
Several factors have contributed to the crypto market’s recent performance:
1. Expected regulatory changes
The crypto market faced tight regulatory fronts in the past years. However, Donald Trump’s election has fueled speculation about a more supportive regulatory framework for cryptoassets given his pro-crypto stance. His regime promises to make the U.S. a global crypto hub and the idea of a U.S. strategic BTC reserve have ignited enthusiasm among individuals and institutions. Also, several pro-crypto candidates won seats in the U.S Congress in the just-concluded elections and as promised by Trump, the U.S. SEC has welcomed a new administration to be led by Paul Atkins.
2. Positive macroeconomic shifts
A shift in monetary policy by the U.S. Federal Reserve, including interest rate cuts, has bolstered investor interest in alternative assets like BTC, ETH, XRP, SOL, BNB, etc. Rising global liquidity has further accelerated capital inflows into the cryptoasset, viewed as scarce and resistant to inflation. Notably, the global money supply is expected to grow by $20 trillion in 2025.
Read also: Bitcoin eyes $2T inflow amid $20T global money supply growth in 2025.
3. Institutional engagement
The approval of crypto ETFs in major markets has simplified access for institutional investors. These financial instruments enable traditional market players to gain exposure to cryptoassets without directly holding them, enhancing its appeal to risk-averse institutions. “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,” explained a Binance spokesperson in a statement.
So far, only BTC and ETH ETFs have been approved in the U.S., with more crypto ETFs expected to be launched in the coming year. Notably, several global asset managers have filed applications to launch Solana and XRP ETFs in 2025. Whether or not they will be approved remains to be seen.
4. Bitcoin halving effect
Among the factors driving the recent crypto market growth is the fourth bitcoin halving, which took place in April 2024. This pre-programmed event reduced block rewards from 6.25 BTC to 3.125 BTC, causing a reduction in the supply of new bitcoins into the market and increasing demand for the asset. Historically, BTC and altcoins prices tend to surge to new all-time highs post-halving.
Read also: XRP claims 3rd largest cryptocurrency spot; eyes new all-time high price.
Global crypto market hit new all-time high
The crypto market’s total capitalization rose to a new all-time high above $3.89 trillion as of 9 December 2024, according to Coingecko data. Consolidating at $3.77 trillion at the time of writing, BTC accounts for an estimated $1.96 billion, ETH accounts for $468.34 billion while XRP boasts a market cap of $138.36 billion at the time of writing. Of the $3.77 trillion, stablecoins’ market cap is at $204 billion and has a 5.4% share of the total crypto market cap.
Read also: How to Build a Diversified Crypto Portfolio
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
