November unveiled a remarkable 18% surge in the decentralized finance (DeFi) sector’s market share in the cryptocurrency market. This development adds another layer to the ongoing narrative of crypto markets experiencing dynamic shifts.
Notably, non-fungible tokens (NFTs) also painted the month green, with trading volumes leaping by an impressive 200%, per insights from the latest Binance Research report. The surge in both DeFi and NFTs raises eyebrows, prompting analysts to delve into the driving forces behind these substantial market movements.
The DeFi sector, holding steady between 3.8% and 4.1% throughout the year, witnessed a sudden uptick in November, culminating in a 4.44% market share by month-end. Key contributors to this surge were identified as THORChain, PancakeSwap, Uniswap, and Synthetix, each playing a pivotal role in propelling the sector forward.
Further contributing to the DeFi enthusiasm, the total value locked (TVL) in DeFi protocols surged by 25% since the beginning of 2023, with a significant 14% increase in November alone. The TVL, which hovered around $45-50 billion throughout the year, now teases the possibility of breaching the $50 billion milestone, fueled by the recent momentum.
Ethereum (ETH) maintained its stronghold as the dominant blockchain in the DeFi realm, commanding over 56% of the total TVL. Tron (TRX) secured the second position with a 16% share, followed by BNB Chain (BNB) at 6%. This distribution emphasizes Ethereum’s enduring influence despite the growing competition in the DeFi space.
This year’s standout category was liquid staking, boasting an impressive $27 billion. Lido Finance protocol emerged as the primary contributor, with a substantial $20 billion, a feat attributed to the impact of the Shanghai update on facilitating growth within this category.
Simultaneously, the entire cryptocurrency market witnessed a significant uptick, spurred by a sharp increase in Bitcoin (BTC) prices. Beginning November with a market capitalization of $1.28 trillion, the crypto market concluded the month at $1.43 trillion. Surpassing expectations, December opened with a market capitalization exceeding $1.6 trillion, underscoring the industry’s resilience and growth.
