Last month, crypto trading volumes dipped significantly as the market experienced a widespread retracement, according to JPMorgan, a Wall Street bank.
The bank noted a steep decline in stablecoin activity, with average daily volumes falling 26% month-over-month, alongside a notable drop in decentralized finance (DeFi) and non-fungible token (NFT) trading.
Apprehensions regarding leverage, potential for a new crypto winter, and poor performance compared to equities negatively impacted valuations and trading activity, overshadowing a few mergers and acquisitions and product launches, as stated by analysts led by Kenneth Worthington in a report released on Tuesday.
Additionally, inflows into U.S. listed crypto products turned negative, as reported by the analysts. U.S. bitcoin spot exchange-traded funds (ETFs) experienced net outflows of $3.4 billion in November, erasing the net inflows from October.
U.S. ether exchange-traded products had their worst month ever, registering $1.4 billion in net redemptions, per the report.
Overall trading activity also declined. Spot trading volumes dropped by 19% month-over-month in November, based on CoinDesk Data, while TradingView indicated a similar decline of around 23%, according to JPMorgan.
Bitcoin’s market capitalization fell by 17% to $1.8 trillion, while ether’s market cap decreased by 22% to $361 billion, as reported by the analysts.
Overall, crypto significantly lagged behind traditional equity benchmarks, with the S&P 500 remaining flat and the Nasdaq 100 falling roughly 2% last month.
The total crypto market capitalization declined by 17% to $3.04 trillion, while crypto-related public stocks lost 21% of their value.
Read more: JPMorgan Maintains Bitcoin’s Gold-Linked Target at $170K Despite Recent Drop
