Market Cap Drops -14.4% in Q2
In 2024 Q1, the total crypto market cap nearly reached all-time highs. However, Q2 saw a -14.4% drop, closing at $2.43 trillion in June. Bitcoin’s fourth halving occurred without issue, but the market’s response was muted. The excitement from Q1, driven by US spot Bitcoin ETFs approval, gave way to a volatile Q2.
Bitcoin Ends Q2 at $62,734
Bitcoin peaked at $73,098 in mid-March but ended Q2 down -11.9% at $62,734. Despite the halving event, Bitcoin’s price did not see significant movement. Trading volumes also decreased by -21.6%, averaging $26.6 billion daily. The market grew wary as Mt. Gox moved 140K BTC and the German government sold seized Bitcoin.
Bitcoin Mining Hash Rate Hits ATH
Bitcoin’s mining hash rate reached an all-time high of 721M TH/s on April 23, 2024. Yet, it fell by -18.8% in Q2, marking the first quarterly decline since 2022 Q2. Meanwhile, companies like BitDigital and Core Scientific explored AI expansions. Tether announced a $500 million mining sector investment, and Block developed a 3nm mining chip.
Meme Coins Lead Market Narratives
In Q2 2024, Meme Coins, Real World Assets (RWA), and AI were the top narratives, capturing 35.7% market share. Meme coins dominated, with four of the top 15 narratives related to them. Solana and Base emerged as the most popular blockchain ecosystems.
Ethereum Turns Inflationary
Ethereum added 120,818 ETH to its supply in Q2 2024, becoming inflationary. The network emitted 228,543 ETH while burning 107,725 ETH. The burn rate fell -66.7% from Q1, reflecting decreased network activity and lower gas fees. ETH burns exceeded emissions on only seven days in Q2, down from 66 days in Q1.
CEX Spot Trading Volume Drops
Top 10 centralized exchanges (CEXs) saw a -12.2% decline in spot trading volume, totaling $3.40 trillion in Q2. Binance retained a 45% market share, while Bybit rose to second place with 12.6%. Gate, Bitget, and HTX were the only CEXs to increase trading volumes.
DEX Trading Volume Rises
Decentralized exchanges (DEXs) recorded a +15.7% increase in spot trading volume, totaling $370.7 billion in Q2. Uniswap maintained a 48% market share. Newcomers Thruster and Aerodrome saw significant gains, driven by meme coin trading and points farming.
The crypto market experienced a dynamic Q2 in 2024. Despite some setbacks, new trends and developments highlight the industry’s evolving landscape.
