After nearly breaching all-time highs in Q1 2024, the total crypto market cap returned some of those gains in Q2 2024, dropping by $408.8 billion (-14.4%), closing at $2.43 trillion in June 2024, says a new report by CoinGecko.
“2024 Q2 brought Bitcoin’s long-anticipated fourth halving, which went off without a hitch. Each halving ushers in what crypto natives consider a new era, though the market response to the event was largely muted,” reads the Q2 2024 Crypto Industry Report.
“After the exuberance in Q1 [2024] following the approval of the U.S. spot Bitcoin ETFs, Q2 proved to be pretty choppy for Bitcoin and the crypto market as a whole.”
Market leader Bitcoin ended the quarter with a -11.9% decline after hitting an all-time-high of $73,098 in mid-March 2024. The crypto would oscillate between $58,000 – $72,000 levels and the 4th halving had no effect on its price, according to the analysis by CoinGecko.
BITCOIN | #Bitcoin Completes its 4th Halving, Miner Rewards Slashed from 6.25 BTC to 3.125 BTC
Despite this reduction, miners still earn transaction fees for each block they mine as usual.https://t.co/l6WX2PYd15 pic.twitter.com/JxhoBkRXYp
— BitKE (@BitcoinKE) April 20, 2024
Bitcoin trading volume also declined throughout Q2 2024 to a daily average of $26.6 billion, a -21.6% decline from the previous quarter.
In one of the key trends that were sustained in Q1 2024 were:
- Meme Coins
- Real World Assets (RWA), and
- Artificial Intelligence (AI)
These were the most popular narratives in Q2 2024, capturing 35.7% of market share.
“Meme coins dominated the chart, with 4 of the top 15 most popular crypto narratives being meme coin related. Meanwhile, 4 out of 49 blockchain ecosystems, Solana, Ethereum, Base, and TON made it into the top 15 crypto narratives. Solana and Base were the most popular ecosystems, capturing 22.9% share of market attention.”
Another interesting trend observed by CoinGecko was that $ETH turned inflationary during Q2 2024, as 107,725 ETH were burned, while 228,543 were emitted in Q2 2024.
“There were only 7 days in Q2 in which ETH burns exceeded emissions. In comparison, this figure stood at 66 days in Q1.”
Finally, the quarter also observed a decline in activity on centralized exchanges, while trading on decentralized exchanges increased.
The top 10 centralized exchanges (CEX’s) recorded $3.40 trillion in spot trading volume. This represents a drop of -12.2% quarter-on-quarter (QoQ), in line with the overall crypto market performance.
Meanwhile, the top 10 decentralized exchanges (DEX’s) recorded $370.7 billion in spot trading volume. This represents an increase of +15.7% quarter-on-quarter (QoQ), with DEXes having benefited from a surge in meme coins and the many airdrops throughout Q2 2024.
Click here for the full report.
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