We are excited to announce that BingX has collaborated with the experts at CoinGecko to bring you the detailed 2024 Q2 Crypto Industry Report. This article will delve into the key insights and highlights from the report, examining the state of the cryptocurrency market, the performance of major cryptocurrencies like Bitcoin and Ethereum, and the dynamics of centralized and decentralized exchanges.
2024 Q2 Crypto Industry Report: A Comprehensive Analysis
Introduction
The 2024 Q2 Crypto Industry Report by CoinGecko offers an in-depth analysis of the cryptocurrency market's performance over the second quarter of 2024. The report provides valuable insights into market trends, significant events, and emerging narratives within the crypto space. This article aims to summarize the key findings of the report and provide a comprehensive overview of the current state of the crypto industry.
Key Highlights
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Total Crypto Market Cap Fell -14.4% in 2024 Q2, Outperformed by The S&P 500 (+3.9%)
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Bitcoin Ended 2024 Q2 at $62,734, Down -11.9%
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Bitcoin Mining Hash Rate Hit ATH, Before Dropping -18.8%
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Meme Coins Were the Most Popular Narrative in 2024 Q2, Accounting for 14.3% Market Share
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Ethereum Turned Inflationary, Adding 120K ETH to Circulating Supply
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Spot Trading Volume on Centralized Exchanges Hit $3.40T in 2024 Q2, Down -12.2% QoQ
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Decentralized Exchanges Hit $370.7B in Trading Volume, up +15.7% QoQ
Total Crypto Market Cap Performance
Market Cap Decline
The total cryptocurrency market capitalization experienced a significant decline of -14.4% in Q2 2024, ending the quarter at $2.43 trillion. This drop of $408.8 billion indicates a volatile market that struggled to maintain the gains achieved in Q1 2024. The market oscillated within the $2.30 trillion to $2.90 trillion range, unable to reach new all-time highs.
Comparison with Traditional Markets
In contrast to the crypto market's decline, the S&P 500 continued its upward trajectory, ending Q2 2024 with a +3.9% increase. This divergence led to a significant drop in the correlation between the total crypto market cap and the S&P 500, from 0.84 in Q1 to 0.16 in Q2. Crypto volatility remained high, with an annualized volatility of 48.2% for the total market cap and 46.7% for Bitcoin, compared to the S&P 500's lower volatility of 12.7%.
Bitcoin's Performance
Price Movement
Bitcoin's performance in Q2 2024 was marked by significant fluctuations. After reaching a new all-time high of $73,098 in mid-March, Bitcoin's price oscillated between $58,000 and $72,000. Ultimately, Bitcoin ended the quarter at $62,734, representing a -11.9% decline.
Trading Volume
Bitcoin trading volume also saw a decline in Q2 2024, with a daily average of $26.6 billion, down -21.6% from the previous quarter. Market participants were spooked by news of Mt Gox moving its stash of 140K BTC and the German government's sale of seized Bitcoin.
Mining Hash Rate
Bitcoin's mining hash rate reached an all-time high of 721M TH/s on April 23, 2024, before experiencing a -18.8% decline. This marks the first quarterly decline in Bitcoin's hash rate since Q2 2022. Despite the drop, the mining industry saw significant developments, including expansions by companies like BitDigital, Hive, Hut 8, Terawulf, and Core Scientific, as well as Tether's $500 million investment in the sector.
Ethereum's Performance
Supply Dynamics
Ethereum's circulating supply increased by 120K ETH in Q2 2024, as emissions outpaced burns. A total of 107,725 ETH were burned, while 228,543 ETH were emitted, resulting in a net addition of 120,818 ETH to the supply. The burn rate of ETH fell by -66.7% quarter-on-quarter due to a slowdown in network activity and lower gas fees.
Burn Rate
There were only seven days in Q2 2024 when ETH burns exceeded emissions, compared to 66 days in Q1. The largest contributor to ETH burns was ETH Transfers, which burned 6,838 ETH in Q2.
Popular Narratives
Meme Coins
Meme coins emerged as the most popular narrative in Q2 2024, accounting for 14.3% market share. This trend was similar to Q1 2024, with meme coins dominating the top 15 most popular crypto narratives.
Real World Assets (RWA) and Artificial Intelligence (AI)
Real World Assets (RWA) and Artificial Intelligence (AI) also captured significant market attention, contributing to 35.7% of the market share. Solana and Base were the most popular blockchain ecosystems, with Solana and Base capturing 22.9% of market attention.
Centralized Exchanges (CEX)
Spot Trading Volume
In Q2 2024, the top 10 centralized exchanges recorded a total spot trading volume of $3.40 trillion, a decline of -12.2% quarter-on-quarter. Binance remained the largest CEX, with a market share of 45% despite a slump in trading volume. Bybit emerged as the second-largest spot CEX, overtaking Upbit, and increased its market share to 12.6% in June 2024.
Notable Performances
Gate, Bitget, and HTX were among the top CEXes with increased trading volumes. Gate's trading volume rose by 51.1% to $85.2 billion, Bitget by 15.4% to $24.7 billion, and HTX by 13.7% to $25.5 billion.
Decentralized Exchanges (DEX)
Trading Volume
Decentralized exchanges saw a surge in trading volume in Q2 2024, with the top 10 DEXes recording $370.7 billion in spot trading volume, up +15.7% quarter-on-quarter. Uniswap remained the dominant DEX, ending June 2024 with a 48% market share.
Emerging DEXes
Thruster and Aerodrome were notable gainers in Q2 2024. Thruster, native to Blast, saw volumes rise by 464.4% to $6.0 billion, ending June with a 3% market share. Aerodrome grew by 297.4% to $5.9 billion, entering the top 10 with a 3% market share. Thruster benefited from Blast's points farming, while Aerodrome saw a surge in meme coin trading on Base.
Conclusion
The 2024 Q2 Crypto Industry Report by CoinGecko provides a comprehensive overview of the state of the cryptocurrency market. Despite the overall decline in market capitalization and Bitcoin's price, the report highlights significant developments in the crypto space, including the popularity of meme coins, the dynamics of centralized and decentralized exchanges, and the performance of major cryptocurrencies like Bitcoin and Ethereum.
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For more detailed insights and data, we encourage you to read the full 2024 Q2 Crypto Industry Report by CoinGecko. Access the report [here]
Stay informed and make data-driven decisions in the dynamic world of cryptocurrencies!
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