The cryptocurrency market in late November 2016 painted a striking picture of divergence. While Bitcoin held firm near $750, Ethereum suffered a dramatic decline, losing roughly 25% of its market capitalization over the month. Meanwhile, Monero emerged as the month’s big winner, buoyed by a landmark Bitfinex listing that sent its price surging 17% in a single day.
TL;DR
- Ethereum lost approximately 25% of its market cap during November 2016
- Monero surged after being listed on Bitfinex on November 30, becoming the second-strongest currency in the ICONOMI ICNX index
- Bitcoin repeatedly approached $750 but failed to hold above the threshold
- ICONOMI deferred structural changes to its index fund pending community consultation
- Zcash and Augur were excluded from the ICNX due to insufficient trading history
Ethereum’s Painful November
November 2016 was a brutal month for Ethereum holders. After enduring multiple hard forks earlier in the year — including the aftermath of the DAO hack — ETH’s market capitalization tumbled approximately 25%. The price of Ethereum sat at $8.59 on November 30, according to CoinMarketCap data, with a total market cap of roughly $742 million. That represented a stark contrast to Bitcoin’s $11.9 billion valuation at the same snapshot.
The ICONOMI ICNX index, which tracks the top cryptocurrencies weighted by market performance, reflected this shift clearly. In its monthly rebalancing update published on December 1, 2016, the ICONOMI team noted that Ethereum’s reduced weight was a direct consequence of its sustained capital outflow throughout November.
However, there was a silver lining. With all of Ethereum’s hard forks behind it, analysts speculated that the worst of ETH’s price drama might be ending. The cleared blockchain state could provide a more stable foundation for recovery heading into 2017.
Monero Steals the Spotlight
While Ethereum faltered, privacy-focused Monero experienced a remarkable surge. On November 30, Monero’s price jumped 17.02% to $8.95, driven by its listing on the Bitfinex exchange — one of the largest cryptocurrency trading platforms at the time. The listing opened Monero to a significantly larger pool of traders and liquidity.
Monero’s market cap grew by approximately 25 percentage points during November, according to ICONOMI’s analysis, making it the second-strongest currency in the ICNX index. The privacy coin’s weekly gain of 13.36% also outpaced nearly every other top-20 cryptocurrency.
The Monero rally underscored a broader market theme in late 2016: growing demand for privacy-focused digital currencies. As regulatory scrutiny of cryptocurrency increased — highlighted by the DOJ’s John Doe summons served to Coinbase on the very same day — privacy coins like Monero attracted investors seeking greater transactional anonymity.
Bitcoin Holds the Line Near $750
Bitcoin itself had a cautiously optimistic November. The price repeatedly breached $750 during the month but failed to hold above that level for sustained periods. On November 30, BTC closed at $745.69 with a market cap of $11.94 billion and 24-hour trading volume of $84 million.
The ICONOMI team noted that while Bitcoin’s volume-weighted average approached $750 on several occasions, the price spikes were too short-lived to trigger an automatic rebalancing threshold. The gains were attributed to macroeconomic uncertainty — particularly the continuing devaluation of the Chinese yuan and India’s shock demonetization of high-value currency notes earlier in the month.
ICONOMI Index Strategy and Exclusions
The ICONOMI ICNX monthly rebalancing on November 30 made no structural changes — no currencies were added or removed. However, the team hinted at significant upcoming decisions regarding the formation of its first index fund, ICONOMI.index, heavily informed by ICNX learnings.
Notably, Zcash and Augur were explicitly excluded from the index despite their growing profiles. ICONOMI maintained a policy requiring currencies to be listed on exchanges for at least two months before joining the ICNX. Augur had been listed on major exchanges only since October 7, while Zcash launched on October 28. Both were considered for future inclusion.
Why This Matters
The late November 2016 cryptocurrency market offered a preview of themes that would define the industry for years to come. Ethereum’s struggles highlighted the challenges of governance and fork management — issues that would resurface repeatedly. Monero’s surge demonstrated the market’s appetite for privacy technology, a sector that would spawn numerous competitors. And the ICONOMI index fund concept pointed toward the institutional-grade crypto investment products that would eventually capture trillions in assets.
For investors and market watchers, November 2016 was a reminder that crypto markets don’t move in unison. Divergence between major assets creates both risk and opportunity — a lesson as relevant today as it was when Bitcoin was still under $800.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile. Always conduct your own research before making investment decisions.