Q2 2024 Crypto Market Review: Bitcoin Halving and Ethereum Activity Surge
In
the
second
quarter
of
2024,
the
cryptocurrency
market
experienced
significant
events,
including
the
latest
Bitcoin
halving
and
unprecedented
activity
on
the
Ethereum
network,
according
to
Bitwise
Investments.
Market
Performance
Following
a
strong
first
quarter
marked
by
the
launch
of
Bitcoin
exchange-traded
products
(ETPs)
in
the
U.S.,
the
crypto
market
took
a
step
back
in
Q2.
The
Bitwise
Large
Cap
Crypto
Index,
Bitcoin
(BTC),
and
Ethereum
(ETH)
ended
the
quarter
in
the
red.
Despite
the
downturn,
their
year-to-date
gains
remained
robust
at
40%,
45%,
and
50%,
respectively.
Key
Highlights
The
quarter
was
notable
for
several
major
developments:
-
Net
flows
to
Bitcoin
ETPs
approached
$15
billion. -
Stablecoin
transactions
hit
a
historic
high
of
nearly
$3
trillion. -
The
Ethereum
ecosystem
saw
new
records
in
daily
active
addresses,
validators,
and
transactions. -
Crypto
miners
faced
new
economic
realities
post-halving. -
Congress
showed
unprecedented
bipartisan
support
for
crypto,
as
lawmakers
deliberated
the
FIT21
crypto
framework
bill.
Bitcoin
Halving
The
fourth
Bitcoin
halving
event
was
a
significant
milestone.
This
event,
which
occurs
approximately
every
four
years,
reduces
the
rewards
for
mining
new
Bitcoin
blocks
by
half,
impacting
the
supply
dynamics
and
economics
for
miners.
Ethereum’s
Surge
Ethereum
also
made
headlines
with
record-breaking
activity.
The
network
achieved
new
heights
in
daily
active
addresses,
validators,
and
transactions,
reflecting
its
growing
adoption
and
utility.
Stablecoin
Transactions
Stablecoin
transactions
reached
nearly
$3
trillion,
underscoring
their
increasing
role
in
the
crypto
ecosystem
as
a
medium
of
exchange
and
a
store
of
value.
Legislative
Support
On
the
legislative
front,
the
U.S.
Congress
demonstrated
a
significant
shift
in
attitude
towards
cryptocurrency,
with
bipartisan
support
for
the
FIT21
crypto
framework
bill.
This
development
suggests
a
growing
recognition
of
the
importance
of
regulatory
clarity
in
fostering
innovation
and
growth
in
the
crypto
sector.
Conclusion
Despite
the
mixed
performance
in
Q2,
the
underlying
trends
and
developments
point
to
a
maturing
market
with
growing
institutional
interest
and
legislative
support.
For
a
detailed
analysis
of
these
trends
and
more,
refer
to
the
full
report
by
Bitwise
Investments.
About
Bitwise
Bitwise
Asset
Management
is
the
largest
crypto
index
fund
manager
in
America.
It
provides
a
range
of
index
and
active
solutions
across
ETFs,
separately
managed
accounts,
private
funds,
and
hedge
fund
strategies.
Bitwise
is
known
for
its
expert
research,
commentary,
and
deep
access
to
the
crypto
ecosystem.
The
firm
is
backed
by
leading
institutional
investors
and
has
offices
in
San
Francisco
and
New
York.
Image
source:
Shutterstock
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