Crypto trading volumes fell last month as the market suffered a widespread decline, according to Wall Street bank JPMorgan.
The bank reported a sharp slowdown in stablecoin revenue, with average daily volume down 26% month-over-month, as well as significantly lower decentralized finance (DeFi) and non-fungible token (NFT) volumes.
Concerns about leverage in the system, talk of a possible new crypto winter and underperformance relative to stocks have all weighed on valuations and activity, overshadowing a handful of M&A deals and product launches, analysts led by Kenneth Worthington said in Tuesday’s report.
Flows into U.S.-listed crypto products have also turned negative, analysts wrote. Bitcoin spot exchange-traded funds (ETFs) in the United States saw net outflows of $3.4 billion in November, erasing October’s net inflows.
U.S. ether exchange-traded products recorded their worst month on record, with $1.4 billion in net redemptions, the report noted.
Commercial activity also deteriorated. Overall spot volumes fell 19% month-over-month in November, based on CoinDesk data, with TradingView suggesting a similar decline of around 23%, JPMorgan said.
Bitcoin market value fell 17% to $1.8 trillion, still outperforming ether whose market capitalization slipped 22% to $361 billion, analysts wrote.
Crypto has significantly underperformed traditional benchmarks, with the S&P 500 flat and the Nasdaq 100 down about 2% last month.
The total crypto market cap fell 17% to $3.04 trillion, while public crypto-related stocks lost 21% of their value.
Learn more: JPMorgan maintains Bitcoin gold-linked target at $170,000 despite recent decline
