The cryptocurrency market is witnessing a shift in demand, as mid-tier and lower-tier tokens in the MarketVector index saw significant gains of 16% and 14% respectively in November, overshadowing bitcoin‘s modest 1% rise. As a result, bitcoin’s dominance of the $1.38 trillion crypto market has shrunk from 51.5% to about 49%. Digital Asset Capital Management described this rally as the most sustained and broad-based since January.
The anticipated approval of U.S. spot ETFs that invest directly in bitcoin fueled the rally last month. This rally is not limited to bitcoin, but is also evident in the DeFi sector, where borrowing rates at Aave, a major DeFi lender, have exceeded 10%.
In related news, XRP, which is linked to Ripple Labs Inc, is up 14%, spurred by Ripple‘s partial legal victory against the SEC regarding its regulatory status. Analysts at ByteTree suggest that traders are responding positively to these developments for Ripple.
Despite remaining below its 2021 record of $69,000, bitcoin has seen steady new buying, indicating a change in investor sentiment.
