Crypto Trading Volume Drops 24% in January, Market Cap Increases 8%
In January, the crypto ecosystem saw a 24% decline in total trading volume, according to JPMorgan's research report. Key points include:
- Total market cap increased 8% to approximately $3.4 trillion.
- Market cap growth was mainly in bitcoin, solana, and XRP.
- Average daily volume declined across the ecosystem.
- Post-U.S. election activity has stabilized, with analysts attributing this to the election as a catalyst.
- Decentralized finance (DeFi) and non-fungible tokens (NFTs) showed significant monthly deterioration.
- A new crypto taskforce was established by the Trump administration.
- Controversial accounting rule SAB 121 was rescinded.