Researchers at DWF Labs highlighted that the election of Donald Trump in the United States has significantly shifted the crypto market adoption by institutional investors.
The total crypto market cap has rallied to more than $3.3 trillion in the recent past as Bitcoin price BTC $84 723 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $11.65 B teased the much-hyped $100K target. The overall on-chain trading volume has surged significantly in the fourth quarter amid heightened demand for digital assets by both retail traders and institutional investors.
For instance, Bitcoin alone has seen its trading level rise in November to the same level it was during the 2021 peak of above $154 billion.
According to on-chain data analysis from Santiment, the overall crypto trading volume has surged by 32% in the past 7 days, and continues to grow rapidly as profit distribution from Bitcoin to altcoin escalates.
DWF Labs’ Report on the 2024 Crypto Market
According to a recent report by a popular Dubai-based market maker DWF Labs, the historic victory of President-elect Donald Trump has significantly changed the dynamics of the crypto industry. Furthermore, Trump is heavily invested in the crypto market, currently holding digital assets worth over $7 million led by Ethereum ETH $1 596 24h volatility: 0.3% Market cap: $192.63 B Vol. 24h: $5.56 B .
The most notable impact of Trump’s victory was the huge confidence institutional investors had in the crypto market. As Coinspeaker previously noted, the US spot Bitcoin ETFs have registered huge cash inflows in the last three weeks, led by BlackRock’s IBIT. In the past eight weeks, the US spot BTC ETFs have registered a net cash inflow of more than $9 billion.
According to DWF Labs, the Coinbase Premium, which represents a higher BTC spot price than Binance, has dominated in the past two months fueled by institutional investors.
The DWF Labs report also highlighted significant growth in the DeFi and stablecoins sector in the recent past. The overall supply of Tether USDT $1.00 24h volatility: 0.0% Market cap: $144.63 B Vol. 24h: $23.18 B and Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $60.90 B Vol. 24h: $4.10 B in the recent past is an indication of growing liquidity in the crypto market.
Despite the notable growth in the DeFi sector, DWF Labs noted that meme coins have registered the highest gains in the recent past. As of this report, the memecoin industry had a total market cap of about $111 billion and a daily average traded volume of around $21 billion.
“The 2024 crypto market demonstrated significant maturation with distinct sector performance patterns and clearer institutional versus retail behavior. Bitcoin’s strong performance was accompanied by robust growth across multiple sectors, with meme tokens showing particular strength,” DWF Labs concluded.
What’s Next?
The crypto market is expected to grow exponentially in the coming months, fueled by heightened demand from institutional investors and potentially nation-states. The notable success of MicroStrategy Inc (NASDAQ: MSTR) has significantly influenced other companies to adopt a Bitcoin strategy.
Meanwhile, Wall Street experts believe that more countries will adopt a strategic Bitcoin reserve if the United States approves one early next year.
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