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. [source name]

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