In October 2023, the cryptocurrency world witnessed a significant resurgence, marking a month of remarkable growth and optimism. According to the latest report from Binance Research, the crypto market experienced a substantial 19% increase in total market capitalization, making it the second-highest monthly gain of the year. This surge was largely fueled by the widespread anticipation of spot Bitcoin exchange-traded funds (ETFs) gaining approval in the United States.
Several factors fueled the optimism surrounding the spot Bitcoin ETF narrative. Firstly, an erroneous report by Cointelegraph falsely claimed that the SEC had granted approval, creating a buzz in the crypto space. Secondly, the US court reaffirmed the previous ruling in the Grayscale case, reinforcing confidence in ETF approvals. Lastly, reports of Blackrock’s proposed spot Bitcoin ETF being added to a clearing-house eligibility file contributed to the positive sentiment.
During October, the price of Bitcoin (BTC) surpassed the $35,000 mark, rejuvenating the broader cryptocurrency market. All of the top 10 coins by market capitalization ended the month with price increases. Particularly noteworthy were Solana (SOL) and Chainlink (LINK), which boasted gains of 78% and 45%, respectively. BTC itself saw a substantial price increase of 28%, ranking as the third-highest performer for the month.
DeFi Crypto Market Breaks Downtrend
The decentralized finance (DeFi) sector also witnessed a resurgence, breaking its downtrend for the year by recording an 8.8% increase in total value locked (TVL) over the month. Tron, Arbitrum, and Solana were among the top gainers in TVL, with increases of 15.04%, 3.70%, and 17.26%, respectively. Furthermore, October saw the introduction of Ethereum Improvement Proposal 7540 (EIP-7540), which holds the potential to benefit DeFi protocols operating on the Ethereum blockchain.
In the realm of non-fungible tokens (NFTs), the market exhibited signs of a comeback. The trading volume for NFTs in October reached $0.31 billion, signifying a 6.9% increase for the month. While the Nansen’s NFT-500 index and the Blue-Chip-10 index had previously recorded declines of 58% and 50% throughout the year, October finally provided a glimmer of hope, with monthly gains observed across most NFT categories.
With these developments, the crypto ecosystem appears to be regaining its vitality, anticipating spot Bitcoin ETFs, DeFi growth, and a resurgence in the NFT market, which are key drivers of the sector’s October success. However, as November unfolds, the crypto community eagerly awaits further developments and milestones in the ever-evolving world of digital assets.
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