2024 Q2 Crypto Market Overview

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8 Aug 2024

Based on CoinGeco's 2024 Q2 Crypto Industry Report

After nearly breaching all-time highs in the first quarter of 2024, the total cryptocurrency market cap took a significant dip in Q2, declining by 14.4% to close at $2.43 trillion in June. This decline comes in the wake of Bitcoin’s much-anticipated fourth halving, a milestone that usually signifies a new era for cryptocurrency. Despite the halving event, the market's response was muted, with Q2 being marked by volatility and choppy trading conditions. However, the quarter was still eventful, with notable developments across various sectors of the crypto industry.
Our comprehensive 2024 Q2 Crypto Industry Report provides insights into the crypto market landscape, analyzing Bitcoin and Ethereum, and diving deep into decentralized finance (DeFi), non-fungible tokens (NFTs), and the performance of centralized exchanges (CEX) and decentralized exchanges (DEX). Here are the top highlights of CoinGecko’s report for the quarter.

1. Total Crypto Market Cap Fell -14.4% in Q2, Outperformed by The S&P 500 (+3.9%)

The total crypto market cap dropped by 14.4%, amounting to a $408.8 billion loss, ending Q2 at $2.43 trillion. Throughout the quarter, the market fluctuated between $2.30 trillion and $2.90 trillion, struggling to reach new all-time highs. In contrast, the S&P 500 continued its upward trajectory, closing the quarter up by 3.9%. This divergence led to a sharp drop in the correlation between the total crypto market cap and the S&P 500, which fell to 0.16 in Q2 from 0.84 in Q1.
Crypto volatility remained elevated during the quarter, with the total crypto market cap showing an annualized volatility of 48.2%, and Bitcoin at 46.7%. Comparatively, the S&P 500's volatility was significantly lower at 12.7%.

2. Bitcoin Ended 2024 Q2 at $62,734, Down -11.9%

After reaching a new all-time high of $73,098 in mid-March, Bitcoin traded within a range of $58,000 to $72,000 throughout Q2. Ultimately, it ended the quarter with an 11.9% decline, as the fourth Bitcoin halving failed to significantly impact the price. Trading volume also decreased, averaging $26.6 billion daily, down by 21.6% from the previous quarter.
The quarter concluded with market anxiety spurred by the movement of 140,000 BTC from Mt Gox's holdings and the German government selling its seized Bitcoin assets.

3. Bitcoin Mining Hash Rate Hit ATH, Before Dropping -18.8%

Bitcoin’s mining hash rate experienced a volatile quarter, initially hitting an all-time high of 721M TH/s on April 23, 2024, before declining by 18.8%. This marked the first quarterly drop in hash rate since Q2 of 2022.
Despite the decline, the mining industry witnessed significant developments. Companies like BitDigital, Hive, Hut 8, Terawulf, and Core Scientific expanded or planned expansions into AI. Tether also announced a $500 million investment into the mining sector, and Block completed the development of its 3nm mining chip.

4. Meme Coins Dominated the Market Narrative in Q2

Meme Coins, Real World Assets (RWA), and Artificial Intelligence (AI) were the most discussed narratives in Q2, capturing 35.7% of market share. Meme coins particularly stood out, with 4 of the top 15 crypto narratives being related to them. Additionally, ecosystems like Solana, Ethereum, Base, and TON were among the top 15, with Solana and Base gaining 22.9% of market attention.

5. Ethereum Turned Inflationary, Adding 120K ETH to Circulating Supply

During Q2, Ethereum added a net 120,818 ETH to its supply as emissions exceeded 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, as network activity slowed and gas fees dropped.
Only 7 days in Q2 saw ETH burns outpacing emissions, compared to 66 days in Q1. ETH Transfers were the largest contributor to ETH burns, accounting for 6,838 ETH in Q2.

6. Spot Trading Volume on Centralized Exchanges Dropped to $3.40T

Centralized exchanges (CEXs) recorded $3.40 trillion in spot trading volume in Q2, a decline of 12.2% quarter-on-quarter, aligning with the broader crypto market downturn. Binance remained the leading CEX, holding a 45% market share despite reduced trading volumes. Bybit ascended to become the second-largest spot CEX in Q2, surpassing Upbit, with its market share rising to 12.6% in June.
Among the top 10 spot CEXs, Gate experienced the largest volume increase at 51.1% ($85.2B), followed by Bitget at 15.4% ($24.7B), and HTX at 13.7% ($25.5B). These exchanges saw a noticeable rise in new listings and project launches.

7. Decentralized Exchanges Achieved $370.7B in Trading Volume, Up +15.7% QoQ

Decentralized exchanges (DEXs) saw a 15.7% increase in spot trading volume, reaching $370.7 billion in Q2. This growth was driven by a surge in meme coins and airdrops throughout the quarter.
Uniswap retained its position as the dominant DEX, capturing a 48% market share by June 2024. However, smaller DEXs such as Thruster and Aerodrome made significant gains. Thruster, native to Blast, saw a 464.4% increase in volumes ($6.0 billion) quarter-on-quarter, while Aerodrome grew 297.4% ($5.9 billion), both capturing a 3% market share each.

Despite the downturn in Q2, the cryptocurrency market remains dynamic and full of potential. The developments in mining, the growing popularity of meme coins, and the evolving exchange landscape all highlight the resilience and adaptability of the crypto industry. As the market continues to mature, investors and participants must stay informed and vigilant to navigate the ever-changing crypto landscape effectively.