Quick Take

• Stablecoin supply fell to its year-to-date low.
• U.S. spot BTC ETFs recorded $1.3 billion in net outflows last week, compared with $203 million the previous week. U.S. spot Ether ETF net outflows narrowed to $265 million from $432 million.
• U.S. equities ended the week lower after gains following the midterm elections were reversed by declines in technology and semiconductor shares. Semiconductor shares declined on Thursday amid discussions about data-center regulation and energy requirements. Equities recovered some losses on Friday following the October employment report.
• • The S&P 500 dropped -2.68%, Nasdaq Composite fell -3.37%, Dow Jones Industrial Average declined -0.94%, and Russell 2000 decreased -2.05%.
  • Key Market Drivers:
  • • Midterm Elections and AI Infrastructure Policy: Following Wednesday's equity market gains, market participants adjusted expectations on Thursday regarding potential regulatory adjustments for AI infrastructure. Policy discussions among state leadership — including Texas governor-elect Gina Hinojosa's proposed measures regarding data center energy consumption and electrical grid impacts — contributed to re-evaluations across infrastructure and hardware supply chains.
    • Semiconductor Sector Movement: The PHLX Semiconductor Index declined over 12% across the week with much of the decline occurring on Thursday. Hardware and memory producers registered notable decreases (Micron dropped ~22%, while Marvell and Western Digital decreased ~28% on the week). Investors also assessed earnings guidance from Qualcomm and Arm.
    • October Labor Report: Nonfarm payrolls rose by 165,000 in October, above the cited consensus forecasts of 59,000, while the unemployment rate declined to 4.1% and average hourly earnings rose 0.4% month over month.
    • Crude Oil Price Decline: Brent crude futures fell more than 13% on the week to close below $99 per barrel (with WTI near $90.83/barrel).
  • Sector and Style Dynamics:
  • • Energy Sector Adjustments: The Energy sector recorded the largest weekly decline (S&P 500 Energy down ~12% over five sessions), corresponding with lower crude oil futures prices.
    • Technology & Hardware Volatility: Information Technology tumbled 7.3% on Thursday alone before staging a partial Friday rebound led by Advanced Micro Devices (+11.04%), Tesla (+4.23%), and Nvidia (+2.78%).
    • Relative Performance of Defensive Sectors: Value and high-dividend strategies outperformed growth strategies over the week. Utilities, healthcare and selected consumer discretionary shares also recorded stronger relative performance.

Research Dashboard

According to our research dashboard, price and volume indices decreased -2.64% and -4.78%, respectively, while the volatility index rose +30.48% last week.

Index token prices all dropped except Zcash (ZEC), which activated its NU7 upgrade during the week. BTC and ETH fell -1.88% and -5.25%, respectively. Tokens’ volatility mostly increased, driven by ETH and BTC.

Chart of the Week

Stablecoin supply declined through October and early November, indicating a contraction in crypto-native dollar balances. Total stablecoin supply fell by 2.76% year-to-date (YTD), reaching $300 billion on November 9, its lowest level since October 2025. Among the selected dollar stablecoins, USDe supply fell 24.20% year to date, followed by PayPal USD (PYUSD) at 23.50%, USDT at 5.42% and USDC at 1.91%, while Ripple USD (RLUSD) increased 108.24%. Gold-backed token Tether Gold (XAUT) grew 76.97%.

For dollar-pegged tokens, declining circulating supply is consistent with redemptions exceeding new issuance. A smaller supply may reduce funding available for trading and lending, but its market impact also depends on exchange liquidity, lending utilization and transaction activity.

Weekly Performance

Most tracked large-cap tokens declined last week. AVAX and POL rose 3.1% and 1.5%, respectively, while BCH recorded the largest decline among the tracked tokens, at 13.4%.

All tracked DeFi category indices declined, led by RWA (-14%).

News Highlights

Company News

• Crypto.com launched Rips within the Crypto.com App, allowing users to open digital packs representing physical trading cards. Users can accept a quoted sell-back offer or request physical delivery, subject to the service’s terms.

Regulation

• Greece approved a framework that applies a 10% tax to qualifying crypto gains and a 15% rate to income from staking, lending, DeFi activity and validation taking effect in 2027. The framework also includes loss carryforwards and a limited disclosure window. The measure provides greater tax certainty but increases compliance costs. However, the treatment of crypto-to-crypto swaps remains potentially ambiguous.
• South Korea’s government backed a proposed two-year delay of its crypto-gains tax until 2029, which would be the fourth postponement. The planned regime would impose a combined 22% tax on annual gains above 2.5 million won, while the government also proposed three-year loss carryforwards.
• Hong Kong passed legislation implementing the OECD Crypto-Asset Reporting Framework. From 2027, covered service providers must collect customer tax-residency data and report transactions including fiat trades, crypto swaps and transfers to external wallets; information exchanges with other jurisdictions are expected from 2028. The law introduces additional customer due-diligence and transaction-reporting obligations; it does not itself establish a new crypto tax.
• Hong Kong’s Monetary Authority and Project Ensemble advanced tokenized settlement to 24/7 real-value transactions and plans to expand trials to regulated stablecoins and tokenized Exchange Fund Bills. Separately, HSBC said its Hong Kong dollar stablecoin had reached 50,000 users shortly after launch. The developments expand Hong Kong’s tokenized-settlement trials and regulated digital-money services.

Adoption

• Europe’s largest fund manager by assets Amundi launched a tokenized share class of its STOXX Europe 600 equity-index fund on Ethereum. The fund remains available through traditional channels, and Amundi said it intends to expand its tokenized-fund offering.
• Schroders brought a tokenized share class of an emerging-market bond strategy to Solana. The structure uses a feeder fund, giving investors onchain exposure to government and corporate emerging-market debt rather than direct ownership of the underlying fund.

Others

• Ethereum developers delayed the Glamsterdam upgrade on the Hoodi testnet while investigating eight smart-contract invariants linked to EIP-8037 and EIP-8038. The proposed gas-accounting changes could break contracts that rely on fixed gas-cost assumptions, particularly when external calls fail.
• Zcash activated its NU7 upgrade, reducing target block time from 75 to 25 seconds and increasing estimated simple shielded-payment capacity to more than six transactions per second. The upgrade also changes fee allocation and retires the Sprout privacy pool.
• ZetaChain passed a governance vote to wind down its Cosmos-based Layer-1 on December 9 and migrate ZETA to Solana on a planned 1:1 basis. Eligible balances include staked and unbonding tokens, while exchange conversion schedules may vary.

Catalyst Calendar

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