JPMorgan Reports Slower Crypto Growth in January, Market Cap Rises 8%
According to JPMorgan’s latest research, January saw slower growth within the cryptocurrency ecosystem, with total trading volume dropping by 24%. Despite this, the total market capitalization of cryptocurrencies increased by 8%, reaching approximately $3.4 trillion. The report highlights that market cap growth was mainly fueled by Bitcoin (BTC), Solana (SOL), and XRP, while declines in average daily volume (ADV) were seen across the broader ecosystem.
JPMorgan analysts, led by Kenneth Worthington, noted that the U.S. election in November likely served as a catalyst, and that the market is currently adjusting to post-election conditions. They observed that activity and token price levels are stabilizing as the market finds its equilibrium.
In terms of sector performance, decentralized finance (DeFi) and non-fungible tokens (NFTs) showed the worst monthly results, with notable drops across various metrics.
On the regulatory front, there was some positive news, as the new Trump administration formed a dedicated crypto task force and rescinded the controversial SAB 121 accounting rule, signaling a shift in policy direction.
