Research Summary
The report provides a comprehensive analysis of the crypto market in Q2 2024, highlighting key trends, performance metrics, and market dynamics. It covers the performance of Bitcoin and Ethereum, the impact of Bitcoin’s fourth halving, the state of decentralized finance (DeFi) and non-fungible tokens (NFTs), and the performance of centralized and decentralized exchanges.
Key Takeaways
Crypto Market Performance
- Market Downturn: The total crypto market cap fell by 14.4% in Q2 2024, closing at $2.43 trillion in June. This was despite nearly breaching all-time highs in Q1 2024. The S&P 500 outperformed the crypto market, ending Q2 2024 up 3.9%.
- Bitcoin’s Performance: Bitcoin fell 11.9% in Q2 2024, ranging between $58k and $72k, just below its all-time high of $73k. The fourth Bitcoin halving occurred in this quarter but had no significant impact on the price.
Exchange Performance
- Centralized Exchanges: Spot trading volume on centralized exchanges (CEX) hit $3.40T in Q2 2024, a drop of 12.2% from Q1 2024. Binance remained the largest CEX, ending June 2024 with a market share of 45%.
- Decentralized Exchanges: Spot trading volume on decentralized exchanges (DEX) increased 15.7% to hit $370.70B in Q2 2024, due to a surge in meme coins and airdrops. Uniswap remained the dominant DEX, ending June 2024 with a 48% market share.
Ethereum and Bitcoin Mining
- Ethereum’s Supply: Ethereum added 120.8K ETH to its supply in Q2 2024, as emissions outpaced burns, making the network inflationary during the past quarter.
- Bitcoin Mining: Bitcoin mining hash rate declined 18.8% in Q2 2024, its first quarterly decline since Q2 2022. Despite the drop, companies such as BitDigital, Hive, Hut 8, Terawulf, and Core Scientific expanded or are looking to expand into AI.
Actionable Insights
- Monitor Market Volatility: With the total crypto market cap at an annualized volatility of 48.2% and Bitcoin at 46.7%, stakeholders should closely monitor market volatility for potential opportunities and risks.
- Assess Impact of Halving Events: Despite the muted market response to Bitcoin’s fourth halving, stakeholders should assess the potential long-term impact of such events on the crypto market.
- Explore Emerging Trends: With the surge in meme coins and airdrops contributing to increased trading volume on DEXes, stakeholders should explore these emerging trends for potential growth opportunities.
