· 9 out of top 10 cryptos saw month-on-month increase in trades of over 100%
· Bitcoin trades rose by 221% as price hit new all time high
· Investors piled into XRP with month-on-month increase in trades of 1,109%
Retail investors bought into the November crypto rally with nine of the top ten cryptos on investment platform eToro showing a month on month increase in trades of over 100%.
Bitcoin, which remained the top traded cryptoasset on eToro in November, rose from $13,700 on the 1 November to an all time high of $19,895 on the 1st December, causing mainstream media to turn its attention to the asset class once again.
| Top cryptoassets invested in globally by eToro clients – November 2020 | |||
| November rank | Cryptoasset | Percentage change in trading activity MoM | October rank |
| 1 | Bitcoin | 221% | 1 |
| 2 | XRP | 1,151% | 4 |
| 3 | Ethereum | 279% | 2 |
| 4 | Cardano | 230% | 3 |
| 5 | Stellar | 859% | 10 |
| 6 | Tron | 170% | 5 |
| 7 | Litecoin | 335% | 8 |
| 8 | IOTA | 302% | 9 |
| 9 | Tezos | 105% | 6 |
| 10 | Bitcoin Cash | 281% | 11 |
Simon Peters, market analyst and crypto expert at eToro, commented: “Bitcoin exploded in November, smashing through resistance level after resistance level, with only minor and relatively predictable retracements.
“Whilst we are seeing price action similar to that of 2017, the fundamentals are very different.
“Despite obvious excitement from retail investors, the price rise we have seen in bitcoin is largely due to interest from institutional investors driving demand and a potential increase in adoption through payment platforms such as PayPal.
“Bitcoin has been the focal point for much of the crypto community, but altcoins are also making waves as investors look to alternative cryptoassets to diversify and make gains elsewhere. XRP’s increase in month-on-month trades is entirely logical in the context of November’s price rise. The token rose from $0.240 at the start of November to $0.661 at the end of it.
“Despite the short-term gains many of the top cryptoassets have made, it is important to remember that many investors will be best served by treating crypto as a long-term investment. Despite a steady dip in volatility levels, there are still price fluctuations on a day-to-day basis. Investors may see a benefit in ‘hodling’ and staying calm, instead of being caught up in the hustle and bustle of day trading.”
Ripple’s XRP token saw the largest month-on-month increase in trades, up 1,151% in November compared with October.
Stellar saw the second largest month-on-month increase, 859%, as investors reacted positively to the Protocol 15 upgrades voted in on 23 November. This includes two features designed to increase usability and foster the appeal of the platform to a wider audience.
Ethereum dropped to the third most traded cryptoasset, despite making progress with the Ethereum 2.0 upgrades. The Ethereum community successfully deposited the required amount of ETH it needed before its deadline on 24 November, in order to launch the genesis block on 1 December. This will start the next part of the network’s transition from proof of work to proof of stake.
Cardano also saw a substantial increase in month-on-month trades, as altcoins started to rally in bitcoin’s wake and retail investors continued to take advantage of the staking rewards offered by eToro.
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