CoinGecko Report: Crypto Market Declines 14.4% in Q2 2024 Amid Key Developments

The
second
quarter
of
2024
saw
significant
shifts
in
the
cryptocurrency
landscape,
according
to
CoinGecko’s
latest
report.
Despite
a
muted
price
action,
the
period
was
marked
by
noteworthy
developments,
including
Bitcoin’s
anticipated
fourth
halving
and
fluctuations
in
trading
volumes
on
centralized
and
decentralized
exchanges.

Total
Crypto
Market
Cap
Fell
-14.4%
in
Q2
2024

The
total
cryptocurrency
market
capitalization
dropped
by
14.4%,
ending
the
quarter
at
$2.43
trillion.
This
decline
contrasted
sharply
with
the
S&P
500,
which
rose
by
3.9%
during
the
same
period.
The
correlation
between
the
crypto
market
cap
and
the
S&P
500
plummeted
from
0.84
in
Q1
to
0.16
in
Q2,
highlighting
the
divergent
paths
of
these
markets.

Volatility
remained
a
prominent
feature
in
the
crypto
market,
with
an
annualized
volatility
of
48.2%,
while
Bitcoin’s
volatility
was
slightly
lower
at
46.7%.
In
comparison,
the
S&P
500’s
volatility
was
significantly
lower
at
12.7%.

Bitcoin
(BTC)
Ended
Q2
at
$62,734,
Down
-11.9%

Bitcoin
(BTC)
experienced
an
11.9%
decline,
closing
the
quarter
at
$62,734.
The
cryptocurrency
had
previously
reached
a
new
all-time
high
of
$73,098
in
mid-March.
The
much-anticipated
fourth
halving
of
Bitcoin
did
not
significantly
impact
its
price,
and
trading
volumes
also
saw
a
decline,
averaging
$26.6
billion
daily,
down
21.6%
from
Q1.

The
quarter
ended
on
a
cautious
note,
with
market
participants
wary
after
news
that
Mt
Gox
and
the
German
government
were
moving
substantial
amounts
of
Bitcoin.

Bitcoin
Mining
Hash
Rate
Declined
-18.8%

Bitcoin’s
mining
hash
rate
fell
by
18.8%
in
Q2,
marking
the
first
decline
since
Q2
2022.
The
hash
rate
had
reached
an
all-time
high
of
721M
TH/s
in
April
before
the
drop.
Despite
this
decline,
the
mining
sector
saw
significant
investments
and
expansions,
including
a
$500
million
investment
from
Tether
and
the
development
of
a
new
mining
chip
by
Block.

Meme
Coins
and
AI
Lead
Market
Narratives

Meme
coins,
along
with
real-world
assets
(RWA)
and
artificial
intelligence
(AI),
dominated
market
narratives,
capturing
35.7%
of
market
share.
Meme
coins
were
particularly
popular,
with
four
of
the
top
15
crypto
narratives
being
meme-related.
Solana
and
Base
emerged
as
the
most
popular
blockchain
ecosystems,
accounting
for
22.9%
of
market
attention.

Ethereum
(ETH)
Becomes
Inflationary

Ethereum
(ETH)
saw
its
supply
increase
by
120,818
ETH
in
Q2
as
emissions
outpaced
burns.
A
total
of
107,725
ETH
were
burned,
while
228,543
ETH
were
emitted.
The
burn
rate
fell
by
66.7%
quarter-on-quarter
due
to
decreased
network
activity
and
lower
gas
fees.
Only
seven
days
in
Q2
saw
ETH
burns
exceed
emissions,
compared
to
66
days
in
Q1.

Centralized
Exchanges
(CEX)
See
Trading
Volume
Drop

Centralized
exchanges
(CEXs)
recorded
a
total
spot
trading
volume
of
$3.40
trillion
in
Q2,
a
12.2%
decline
from
Q1.
Binance
maintained
its
position
as
the
largest
CEX,
with
a
45%
market
share.
Bybit
surged
to
become
the
second-largest
spot
CEX,
overtaking
Upbit,
and
increased
its
market
share
to
12.6%.

Among
the
top
10
CEXs,
Gate.io
saw
the
highest
growth
in
trading
volume,
rising
by
51.1%,
followed
by
Bitget
and
HTX,
which
grew
by
15.4%
and
13.7%,
respectively.

Decentralized
Exchanges
(DEX)
Experience
Growth

Decentralized
exchanges
(DEXs)
recorded
a
total
trading
volume
of
$370.7
billion
in
Q2,
a
15.7%
increase
from
Q1.
Uniswap
remained
the
dominant
DEX,
holding
a
48%
market
share.
Thruster
and
Aerodrome
emerged
as
significant
gainers,
with
Thruster’s
volume
rising
by
464.4%
and
Aerodrome’s
by
297.4%,
both
securing
a
3%
market
share
by
the
end
of
June.

For
a
detailed
analysis
and
comprehensive
insights,
the
full
report
is
available
on
CoinGecko’s
website.
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