Treehouse Market Recap: November 2023

Welcome to our November 2023 monthly crypto market recap!

In November, the crypto market witnessed an ensemble of regulatory moves, influenced by a sequence of significant events that affected both traditional and digital financial realms.

The global economy demonstrates notable resilience in the face of challenges. Central bank actions, especially the interest rate increases by the U.S. Federal Reserve, are effectively curbing inflation. This suggests that the peak of rate hikes may be approaching. Meanwhile, the fleeting macroeconomic impacts of the COVID-19 pandemic, particularly on supply chains, seem to have faded. However, there's a looming risk: if demand and inflation prove more stubborn than anticipated, it could lead to further rate increases and a tougher economic downturn.

The brighter economic outlook in the world has positively impacted the cryptocurrency market. Investors are showing a renewed interest in Bitcoin and other major cryptocurrencies, buoyed by the prospect of regulatory advancements such as the approval of Bitcoin ETFs. This month, Grayscale met with the SEC to discuss converting its Bitcoin Trust into a spot Bitcoin ETF, listing shares under NYSE Arca Rule 8.201-E. Competing with major firms like BlackRock and Fidelity, Grayscale remains optimistic about approval by January 2024.

Meanwhile, Binance agreed to a $4.3 billion settlement to resolve U.S. federal criminal charges, marking a significant shift in the industry. This move led to Changpeng Zhao stepping down as CEO, replaced by Richard Teng. High-profile officials, including Treasury Secretary Janet Yellen, were present at the press conference announcing the settlement, which addressed allegations of sanction violations and inadequate anti-money laundering practices. This move marks a turning point for the cryptocurrency industry, especially regarding regulatory compliance and oversight. The settlement, one of the largest in the sector, signals a stronger enforcement stance by U.S. authorities against digital asset platforms that fail to adhere to financial regulations. Binance's decision to comply and the change in leadership reflect an acknowledgment of the need for greater transparency and adherence to regulatory standards.?

Another notable development is the SEC's lawsuit against Kraken , alleging operation as an unregistered broker and dealer and commingling customer and corporate funds. This mirrors actions against other exchanges and involves tokens considered unregistered securities by the SEC. The industry faces heightened scrutiny as regulatory landscapes evolve, significantly impacting market dynamics and investor sentiment.

Join us in unraveling the highs and lows of November and gaining a clearer perspective on the narratives behind this month’s winning tokens! Additionally, stay informed with our comprehensive monthly market recaps at Treehouse Insights and our daily market analysis with Treehouse Daily , providing valuable insights and analysis to navigate the dynamic world of cryptocurrencies!

Bittensor (TAO) ?172.07%

Bittensor, a protocol that integrates artificial intelligence and blockchain technology, has positioned itself as a notable player in the AI-centric cryptocurrency space. With a focus on decentralizing AI through a "peer-to-peer intelligence market," Bittensor rewards its users with TAO tokens for contributing to the collective training of machine learning models. The project, developed by the Opentensor Foundation and launched by former Google developer Jacob Steeves in September 2023, aims to create a transparent AI market where consumers and producers can interact transparently, thus marking a significant step in blockchain and AI convergence.

On November 6, OpenAI hosted AI Developer Day, which showcased enhanced AI capabilities, including upgraded GPT-4 and GPT-3.5 natural language models, has added a significant layer to the narrative of TAO. This event, highlighting advancements in AI technology, likely influenced the broader market's interest in AI-based cryptocurrencies, including TAO. As a result, Bittensor, with its focus on integrating AI into blockchain technology, has potentially gained increased attention and valuation. The correlation between groundbreaking AI developments and the performance of AI-centered tokens like TAO underscores the market's responsiveness to technological innovation in the AI space.

Kaspa (KAS) ?146.52%

Kaspa (KAS) is the world’s first blockDAG - a novel digital ledger framework facilitating parallel block generation and swift transaction confirmations. Launched on November 7, 2021, Kaspa revolutionizes the blockchain paradigm with its decentralized, open-source, and scalable Layer-1 solution. It operates on the GHOSTDAG protocol, a proof-of-work mechanism enabling simultaneous block existence and consensus ordering. Distinct from traditional blockchains, Kaspa ensures scalability and instant confirmations, maintaining a decentralized ethos akin to Bitcoin and Litecoin, without compromising on security or decentralization.

November has been a pivotal month for Kaspa, marked by significant positive developments. For one, Binance Futures' listed KAS on its platform on Nov. 17. Subsequently, the token's value surged by 45%, a testament to the growing mainstream acceptance and investor confidence in Kaspa. This listing, specifically for futures contracts with up to 50x leverage, has sparked a surge in market interest. Moreover, OKX Wallet added support for Kaspa earlier on 3rd Nov. Afterward, the launch of Cryptopedia Season 10 by OKX Wallet , in partnership with Kaspa, represents a significant catalyst for the increase in the price of KAS during this period. This innovative "learn-to-earn" platform incentivizes user engagement by offering substantial rewards, up to USD 1,000,000 in KAS, for completing interactive tasks. The mechanism of distributing rewards for social media-related tasks and for minting KASBOTS NFTs boosts user interaction with the Kaspa network and also enhances the visibility of the KAS token. This campaign features an airdrop of 0.2 KAS to participants, further encouraging direct engagement with the token, and potentially increasing its demand.?

Illuvium (ILV) ?115.82%

lluvium is an open-world fantasy battle game built on the Ethereum blockchain. Illuvium looks to provide a source of entertainment to both casual gamers and hardcore DeFi fans through a range of collecting and trading features. The ILV token is used to reward players for their in-game achievements, entitling them to their share of the Illuvium Vault, and is used for participating in the game’s governance via the Illuvium DAO.

The surge in the value of the ILV token was catalyzed by the announcement of Illuvium's debut on the Epic Games Store . Illuvium's integration into a mainstream gaming platform like the Epic Games Store significantly boosts its visibility and accessibility to a broader audience. This move, especially the elimination of typical entry barriers such as the need for cryptocurrency wallets, not only enhances Illuvium's appeal to traditional gamers but also showcases the increasing intersection between blockchain technology and mainstream gaming. The market perceives this integration positively, as evidenced by the notable 21.33% increase in the ILV token's price.?

Blur (BLUR) ?106.40%

Blur is a decentralized NFT marketplace, renowned for its no-fee policy and swift trading mechanisms, aimed at professional traders. It enhances user experience with features like speedy swapping and trending tabs. The platform engages its community with Blur airdrops, rewarding active participation. At its core is the BLUR token, an Ethereum-based asset facilitating transactions and offering governance rights. Its tokenomics are designed for community-driven growth, allocating a significant share to users, contributors, and investors. This strategy has increased BLUR’s market presence and established it as a leading choice for efficiency, transparency, and community engagement in NFT trading.

BLUR’s impressive performance this month, marked by a 225% increase in value and reaching a peak of $0.54, results from several key events. It began with a breakout from a descending resistance trend, amplified by the completion of Season 2 on the BLUR platform. The momentum was further boosted by distributing about 300 million BLUR tokens in an airdrop valued between $100-$120 million, enhancing market liquidity and investor interest. Additionally, BLUR’s partnership with the Blast Layer-2 protocol, rapidly amassing over $250 million in TVL, significantly bolstered its market position. The listing of BLUR on Binance also marks a key catalyst for the token's price increase. Binance, one of the leading cryptocurrency exchanges, opened spot trading for BLUR with pairs like BLUR/BTC, BLUR/USDT, and BLUR/TRY, significantly enhancing the token's accessibility and liquidity. BLUR was also listed with a zero listing fee and added as a borrowable asset in isolated margin trading, showing its potential appeal to traders.?

The highly anticipated 3.0 airdrop is a major milestone for BLUR, which introduces a dynamic, action-based qualification system.?

Immutable (IMX) ?95.23%

Immutable positions itself as the first Layer-2 scaling solution for NFTs on Ethereum . According to Immutable, its blockchain does away with Ethereum’s limitations like low scalability, poor user experience, illiquidity, and a slow developer experience. The Immutable X (IMX) Token aims to enable developers to build fast, scalable, and secure applications for NFTs and blockchain games.

The recent surge in the value of IMX tokens can be attributed primarily to its strategic partnership with Ubisoft . This partnership is a significant development for IMX, known for its role in NFT integrations in games like Guild of Guardians and Gods Unchained. The collaboration with Ubisoft is poised to enhance the Web3 experience, integrating crypto elements seamlessly into gaming experiences. Such a partnership brings credibility to Immutable’s platform and opens up new avenues for its technology's application in mainstream gaming. This partnership is significant in the context of blockchain technology's growing integration into the gaming industry. Ubisoft's involvement brings industry expertise and market reach that can significantly boost the adoption and visibility of Immutable's technology. The potential development of innovative blockchain games or integrating Immutable’s technology into Ubisoft's existing popular titles could be transformative for the gaming industry.

Moreover, Binance Japan ’s listing of 13 additional tokens, including IMX, marks a driver for the price increase for IMX. This significant expansion by one of the world's foremost cryptocurrency exchanges into the Japanese market not only broadens the investor base but also enhances the visibility and legitimacy of these cryptocurrencies in a highly sophisticated and regulated financial environment. Its inclusion in Binance Japan's offerings, especially under the streamlined process of the Japan Virtual and Crypto Assets Exchange Association, signifies a strong vote of confidence in its potential and stability. This development is expected to positively influence market perception and demand, potentially leading to an uptick in these tokens’ prices including IMX, reflecting the growing global integration and acceptance of diverse cryptocurrencies.

THORChain (RUNE) ?82.33%

RUNE is the native token of the THORChain decentralized liquidity protocol, which enables the exchange of crypto assets across multiple networks without relying on any bridging solutions. As a critical component of the THORChain ecosystem, RUNE serves as both a staking and security asset. Users can stake RUNE to gain rewards by upholding network security, where RUNE acts as collateral to deter malicious actions.

THORChain's ultimate ambitions are to develop seamless inter-blockchain swaps, positioning the platform as a potential leader in decentralized cross-chain solutions.

On 13 November 2023, THORChain marked a significant rise in prominence, as evidenced by a snapshot of its daily trading volume. At this time, it became the second-largest decentralized exchange (DEX) by daily trading volume, surpassing established platforms like PancakeSwap. This achievement underscored the platform's growing adoption and enhanced trust in its infrastructure. Furthermore, introducing innovative features, such as improved lending capabilities and swap functionalities, amplified user engagement and investor interest. This contributed to the increased utility and demand for RUNE, reflecting a pivotal moment in THORChain's evolution within the DeFi sector.

THORChain's trajectory in 2023 is marked by several key features. The lending feature introduced in August 2023 played a crucial role in enhancing platform adoption and liquidity, with RUNE surpassing $1 billion in liquidity volume. The Q3 2023 Ecosystem Report highlighted new features, such as streaming swaps, which contributed significantly to RUNE’s rise. These features increase the platform’s swap volume and offer APRs to liquidity providers, creating a positive cycle for RUNE's value growth. Such strategic initiatives have boosted RUNE’s price and reinforced THORChain's position in the decentralized finance sector.

PancakeSwap (CAKE) ?75.67%

PancakeSwap was originally built on the BNB Chain and allows users to trade tokens without using a centralized exchange. CAKE is used on PancakeSwap for various functions, including staking, farming, governance, lottery, syrup pools, and more. CAKE has no fixed max supply. Instead, it follows a deflationary model, and tokens are burned to reduce supply. In November, PancakeSwap's strategic expansion into the Web3 gaming marketplace was a significant catalyst for the recent 22% price surge of its native token, CAKE. This move by the popular DEX signifies a proactive adaptation to the rapidly evolving crypto landscape, where diversification and innovation are key to attracting and retaining users. Introducing a gaming marketplace and launching new gaming titles like Pancake Mayor have broadened PancakeSwap’s offerings and enhanced the utility and demand for CAKE. The platform has effectively merged entertainment with financial incentives by allowing users to earn CAKE through gaming and integrating it with PancakeSwap NFTs. Furthermore, inviting other developers to build on PancakeSwap's gaming platform promises to expand its reach and reinforce its position in the market, contributing to the sustained increase in CAKE's value. Additionally, PancakeSwap's recent implementation of the 'Gauges ' voting system and the transition from vCAKE to veCAKE metrics represent strategic enhancements that contribute to the increased valuation of CAKE. This move enhances the DEX governance structure, empowering CAKE holders with greater influence over reward distribution across various liquidity pools. By allowing token holders to vote on reward allocation and requiring them to lock their CAKE tokens for voting rights, PancakeSwap not only incentivizes longer-term investment in the token but also strengthens its utility. This system, which rewards longer lock-in periods with more voting power, aligns the interests of CAKE holders with the platform's long-term success. Such developments in governance and utility often create a positive feedback loop, increasing the demand for and the perceived value of the CAKE token in the cryptocurrency market.

Avalanche (AVAX) ?73.89%

Avalanche is an open-source platform for building decentralized applications in one interoperable, decentralized, and highly scalable ecosystem. AVAX is the native utility token of Avalanche. It’s a hard-capped, scarce asset used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple Subnets created on Avalanche. This month, the collaboration between Onyx by J.P. Morgan and Apollo Global under the Monetary Authority of Singapore’s Project Guardian, leveraging Avalanche's technology, is a significant catalyst for the growth of Avalanche's AVAX token. This proof-of-concept (PoC) explores new frontiers in portfolio management using blockchain, smart contracts, and tokenization. It aims to revolutionize the asset and wealth management industry by including alternative assets alongside liquid assets in discretionary portfolios. The use of Avalanche's Evergreen Subnets for institutional applications, and the involvement of leading financial firms like WisdomTree in testing on-chain finance, underscores the growing institutional interest in blockchain technology. This project not only enhances the visibility of Avalanche in the financial services industry but also demonstrates its practical utility in improving efficiency, scalability, and interoperability in asset management. Such advancements are likely to positively influence the perception and value of AVAX in the market.

Solana (SOL) ?42.89%

Solana is an open-source project implementing a new, high-performance, permissionless blockchain. The Solana Foundation is based in Geneva, Switzerland, and maintains the open source project. SOL, Solana's native token, can be passed to nodes in a Solana cluster in exchange for running an on-chain program or validating its output. The system may perform micropayments of fractional SOLs, which are called lamports.?

Despite the ongoing selling of SOL tokens by FTX’s bankruptcy estate, Solana's SOL token experienced a remarkable 22% surge on November 10, breaking past the $54 mark for the first time since May 2022. The Delaware Bankruptcy Court had approved the sale of the failed exchange’s assets, which included 55.75 million SOL, in September 2023. Investor enthusiasm for SOL was partly because some of the tokens from the bankruptcy proceedings were either vested or locked, and there was a weekly sale limit of $100 million imposed as part of the FTX liquidation plan. This turned the initial fear of asset liquidation into hope as investors realized the limited impact of the sales.

Prominent figures in the investment community, such as ARK Invest CEO Cathie Wood, expressed confidence in Solana's technical capabilities. In a CNBC interview, Wood stated that Solana could be a better investment than Ethereum, citing its faster and more cost-effective features. Such endorsements likely contributed to the positive sentiment and increased investor confidence in Solana.

Gas (GAS) ?27.57%

Neo is the most feature-complete blockchain platform for building decentralized applications. It enables developers to digitize and automate the management of assets through smart contracts, with multi-language support that allows developers to use familiar languages. GAS is a token created on the NEO blockchain platform with the primary purpose of transaction fees on the NEO network.

The announcement by NEO founder Dahongfei about a new MEV-free, EVM-compatible sidechain is another catalyst for the price increase of GAS tokens. This strategic development, focusing on enhanced security, privacy, and a smoother experience in the DeFi sector, underscores NEO's commitment to evolving with the complex demands of the blockchain landscape. The sidechain, under development with a testnet launch planned for the end of 2023, is poised to bolster the NEO platform’s functionalities significantly. This advancement likely drives investor enthusiasm and confidence in the potential of GAS tokens, contributing to their price surge.

Closing Remarks?

As the year draws to a close, there's an air of anticipation and optimism. The crypto community remains excited about the potential approval of BTC and ETH ETFs, which could breathe new life into the industry. However, the recent announcement of Bittrex Global's shutdown, effective from December 4, 2023, adds a layer of complexity. The closure of this significant exchange may impact market liquidity and investor confidence, presenting a critical juncture for the market. We want to observe how these events will sculpt the cryptocurrency landscape in the coming months.

As we move into December, the calendar is marked with thrilling gatherings. Scheduled in the vibrant city of Dubai from December 11-12, the Global Blockchain Congress will delve into diverse topics encompassing blockchain, cryptocurrency, DeFi, the Metaverse, and the evolving Web3 landscape. Meanwhile, from December 11-16, Taipei will play host to the Taipei Blockchain Week, a comprehensive exploration of blockchain technology in the heart of Taiwan. These events promise to be a hotbed of innovative ideas and breakthroughs, igniting fresh perspectives and showcasing the latest advancements in the crypto and blockchain domains. We look forward to the myriad of opportunities and revolutionary insights these conferences are set to unveil.

With eyes on December, our unwavering commitment to delving into the ever-changing world of crypto remains unchanged. We remain steadfast in providing in-depth analysis and navigating these dynamic landscapes. Stay tuned for our ongoing exploration of the crypto world through the Treehouse Daily Newsletter and Treehouse Insights Research!

Keen to know how you or your institution performed in September? Check Treehouse out to learn how we have reimagined workflows for digital asset traders and investors seeking actionable market and portfolio data.