TL;DR
- The crypto market experienced a downturn in Q2 2024, according to CoinGecko, with the total market cap plummeting 14.4% from its near-all-time highs in Q1. This volatility contrasted with the traditional market, where the S&P 500 slightly increased.
- Bitcoin’s long-awaited fourth halving in Q2 failed to deliver a significant price boost. The price hovered between $58,000 and $72,000, ultimately closing the quarter at $62,734, down nearly 12%. Trading volumes also dipped, dropping over 21% from the previous quarter.
- Ethereum’s narrative shifted in Q2, as the network transitioned to an inflationary state. The slowdown in network activity and the decrease in gas fees resulted in a net issuance of over 120,000 ETH.
CoinGecko has released its comprehensive 2024 Q2 Crypto Industry Report, shedding light on the significant developments and trends in the cryptocurrency market over the past quarter. The report highlights a notable decline in the total crypto market capitalization, the impact of Bitcoin’s fourth halving, and key movements in the DeFi and NFT ecosystems.
CoinGecko Report: Market Cap Decline
The total cryptocurrency market cap experienced a significant drop of -14.4% in Q2 2024, ending the quarter at $2.43 trillion. This decline came after a period of near-all-time highs in Q1.
The market’s volatility remained high, with an annualized volatility of 48.2% for the total crypto market and 46.7% for Bitcoin. In contrast, the S&P 500 saw a modest increase of +3.9% during the same period, highlighting the divergence between traditional and crypto markets.
Bobby Ong, COO and co-founder of CoinGecko commented: “The crypto market entered a period of post-Bitcoin Halving consolidation amid mixed developments in Q2, with token airdrops, in particular, coming under scrutiny. While the outlook for the second half of 2024 is murkier, we see positive signs including improving macroeconomic conditions, and teams continuing to build regardless of prices.”
Bitcoin Halving and Price Movements
Bitcoin’s long-anticipated fourth halving occurred in Q2 2024, but its impact on the market was muted. Bitcoin’s price ranged between $58,000 and $72,000, ultimately ending the quarter at $62,734, down -11.9%.
The halving did not significantly influence Bitcoin’s price, and trading volumes also saw a decline, averaging $26.6 billion daily, a -21.6% drop from the previous quarter.
Ethereum’s Inflationary Quarter
Ethereum turned inflationary in Q2 2024, adding 120,818 ETH to its circulating supply. The network emitted 228,543 ETH while burning 107,725 ETH. This shift was driven by a slowdown in network activity and a decrease in gas fees, resulting in fewer days where burns exceeded emissions compared to Q1.
Exchange Performance
Centralized exchanges (CEX) saw a decline in spot trading volume, recording $3.40 trillion in Q2 2024, a -12.2% drop from Q1. Binance maintained its dominance with a 45% market share, while Bybit surged to become the second-largest spot CEX.
In contrast, decentralized exchanges (DEX) experienced a +15.7% increase in trading volume, reaching $370.7 billion. Uniswap remained the leading DEX, but new entrants like Thruster and Aerodrome showed significant growth.
CoinGecko’s 2024 Q2 Crypto Industry Report provides valuable insights into the evolving crypto landscape. Despite the market’s challenges, the report highlights the resilience and adaptability of the industry, with emerging trends and narratives continuing to shape its future.
