The cryptocurrency market kicked off the week with a blend of optimism and caution. Bitcoin (BTC) experienced a moderate price gain of 2.5%, even as key fundamental metrics such as application and network revenues have declined to levels not seen in months. Meanwhile, spot Bitcoin exchange-traded funds (ETFs) continued to record significant outflows for the fourth consecutive week, signaling a measure of risk-off sentiment from institutional investors. Despite these mixed signals, select sectors within the crypto ecosystem, particularly those centered around artificial intelligence (AI) and decentralized physical infrastructure networks (DePIN), showcased strong gains, reflecting evolving market preferences and speculative shifts in an otherwise hesitant market environment.
Macro Environment and Risk Asset Performance
The latest performance landscape saw risk assets slightly skewed in favor of crypto, with Bitcoin maintaining steady upward momentum. While BTC rose by 2.5%, traditional equity markets lagged behind. The S&P 500 and Nasdaq 100 both experienced modest declines of 0.1%, suggesting a subdued appetite for risk in legacy markets. In contrast, gold, often regarded as a hedge against macroeconomic instability, ended the period virtually flat with a slight 0.1% increase.
Overall, this moderation in legacy financial markets provided an avenue for cryptocurrencies to outperform on a relative basis. The constructive tone across digital assets was largely supported by pronounced strength in crypto-native sectors, particularly those offering thematic exposure tied to technological innovation and infrastructure development.
Sector Rotation and Thematic Outperformance
One of the most notable developments in the crypto markets during the period under review was the breadth of sectoral gains. Thematic investments—especially those with high growth narratives—captured outsized attention and capital inflows. Both the DePIN and AI sectors emerged as clear leaders, each registering impressive gains of 9%. This robust performance extends a multi-week trend, suggesting that traders are increasingly rotating into higher-beta, story-driven sectors despite broader market hesitancy.
Decentralized finance (DeFi) also enjoyed a positive week, notching a 4.2% gain, while assets aligned with the Ethereum ecosystem followed closely at 3.5%. Such broad-based sectoral strength points to a willingness among traders to seek alpha in areas known for innovation and potential rapid expansion.
On the flip side, the modular blockchain segment experienced notable weakness, falling by 1.7%. This divergence further illustrates that the current rally is not characterized by indiscriminate buying but rather targeted capital allocation towards sectors perceived as having imminent growth catalysts or narrative momentum.
Market Sentiment and Speculation
The marked outperformance of AI and DePIN signals the return of a speculative appetite among traders, particularly as they position themselves ahead of upcoming macroeconomic releases that could shake up the investment landscape. Even as broader equities paused and overall volatility remained low, the cryptocurrency ecosystem continued to serve as a channel for incremental risk-taking.
Looking ahead, trader focus turns to a slate of macroeconomic announcements due this week, which may dictate the next directional move for Bitcoin and potentially spur heightened volatility as sector rotation intensifies and capital seeks to rebalance in response to data.
Decline in Fundamental Blockchain Revenues
Beneath the headline price movements lies a more sobering picture of the industry’s underlying activity. Application revenues, a key measure of adoption and active participation, saw an 11% week-over-week decline. Total application-generated revenue fell from $49 million to $43.5 million, marking the lowest reading since March 2025. This pullback is a clear indication that, in spite of intermittent price rallies, user engagement and commercial activity within core blockchain applications are not yet keeping pace.
Among individual applications, Hyperliquid led with $18.5 million in weekly revenue—an 8% uptick from the previous week. Pump.fun maintained its presence as a top earner but saw a 22% revenue drop, settling at $7.7 million. Meanwhile, Ore made its debut among the top three applications, generating $2.3 million.
Network Revenues at Multi-Year Lows
Broadening the lens to include the major blockchain networks, fundamental health remained weak. Over consecutive weeks, network revenues hovered at approximately $29.5 million—figures not observed since 2022. Such sustained lows in network earnings may indicate a cooling of on-chain activity or a shifting preference toward networks and applications with lower transaction fees or alternative value accrual mechanisms.
Ethereum reclaimed the top spot with $8.9 million in network revenue, continuing its seesaw battle for dominance over the past several weeks. Tron posted $6.3 million, a decrease of 12.5%, while Solana came in third at $5.1 million after a drop of 15%. Notably, Solana, once the consistent revenue leader, has managed to top the leaderboard only once in the past seven weeks, underscoring changing fortunes and evolving competition within the Layer 1 landscape.
ETF Outflows Highlight Institutional Caution
The performance of spot Bitcoin ETFs, products explicitly designed to provide institutional and retail investors with exposure to Bitcoin price movements without direct custody, continues to be a key sentiment indicator. Over the past four weeks, US-based spot Bitcoin ETFs have recorded persistent net outflows. Each of the last three weeks saw over $1 billion pulled from these vehicles, reflecting sustained investor caution and derisking behaviors.
IBIT accounted for the lion’s share of redemptions, suggesting either investors taking profits off the table after prior inflows or a pivot in allocation amid macro uncertainty. Other funds, such as FBTC, BITB, and ARKB, also experienced regular, albeit smaller, withdrawals. Collectively, these outflows have built cumulatively into late November, offering further evidence of a cautious approach among sophisticated capital in the face of an uncertain macro environment.
Adoption and Innovation: Nubank’s Rise as a Crypto Gateway
Innovation and adoption continue to reshape the contours of digital finance, as evidenced by the remarkable growth trajectory of Latin America’s Nubank. As one of the world’s largest digital banking platforms, Nubank reported over 127 million customers by the third quarter of 2025 and boasts an impressive user activity ratio of 83%. Notably, Nubank operates without any physical branches, aligning with the global trend toward digital-first financial services.
Crypto integration has rapidly become a pillar of Nubank’s value proposition. The platform now counts more than 6.6 million crypto users—a remarkable 42% year-over-year increase. Crypto transaction volumes on the platform surged by 250% following the removal of exchange fees. These figures highlight the enormity of latent crypto demand within emerging markets and the importance of frictionless, accessible gateways for onboarding new users to digital assets.
Looking forward, Nubank’s innovation agenda features a planned application for a US bank charter and a pilot program to enable dollar-pegged stablecoin payments. These initiatives underscore the company’s strategic focus on anchoring its presence in both traditional and nascent financial rails, with an eye to future adoption curves.
Security Concerns in DeFi and Web3
Security remains a critical concern for the ongoing maturation of decentralized finance (DeFi) and Web3 applications. According to recent survey data, user awareness of both frontend and smart contract-related risks has sharpened. An overwhelming majority of respondents—88%—identified connecting to malicious websites as their primary fear, surpassing the 77% who cited vulnerabilities in smart contracts themselves.
This heightened vigilance reflects an evolving threat landscape where attackers often target user interfaces and web frontends to compromise funds, in addition to exploiting protocol-level bugs. The prevalent perception of risk affirms the need for enhanced security infrastructure, improved user education, and industry best practices to defend against increasingly sophisticated attacks within the digital asset space.
Outlook: Volatility and Opportunity Amid Macro Uncertainty
The cryptocurrency market stands at a crossroads. On one hand, the resilience and outperformance of sectors like AI and DePIN show that there is still considerable appetite for risk and technological innovation, even as fundamental on-chain metrics lag behind. On the other, the persistent outflows from Bitcoin ETFs and the slump in both application and network revenues highlight the market’s underlying caution and need for renewed conviction.
With a slate of important macroeconomic data and policy decisions on the horizon, traders and investors are bracing for the possibility of renewed volatility. The continued sectoral rotation within crypto suggests that the hunt for alpha remains very much alive, with capital willing to pursue evolving narratives even as foundational activity softens. As positioning normalizes in response to global events, volatility may well return, offering both risks and opportunities for market participants attuned to structural shifts and short-term catalysts alike.
