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The second quarter of 2024 was tough for the crypto industry. Bitcoin, leading the digital currencies, weathered a storm, impacting the altcoins as well. The bull run is still awaited. In this bleak context, the CoinGecko report highlights the trends and upheavals that marked these past months, focusing particularly on the limited impact of the Bitcoin halving and the challenges of Ethereum.
Fall of the crypto market capitalization
Like Bitcoin, the crypto market experienced a steep decline during the second quarter of 2024. Total capitalization fell by 14.4%, dropping from its near-record highs of the first quarter to 2.43 trillion dollars, notes CoinGecko in a recent report.
This volatility stands in stark contrast to the traditional market where the S&P 500 advanced by 3.9%.
Key figures: The crypto market showed an annualized volatility of 48.2%, compared to 46.7% for Bitcoin.
According to Bobby Ong, COO of CoinGecko:
“The crypto market entered a consolidation phase post-Bitcoin halving, with mixed developments during the quarter”
It seems that macroeconomic conditions are improving and teams continue to build despite price fluctuations. This resilience could be a positive indicator for the future, but the road remains bumpy.
Bitcoin and Ethereum: A tense quarter
The fourth Bitcoin halving, eagerly awaited, did not have the expected effect on prices. Bitcoin traded between $58,000 and $72,000, closing at $62,734, a decline of 11.9%.
The trading volumes also decreased, averaging 26.6 billion dollars per day, a decline of 21.6% compared to the previous quarter.
Additionally, Ethereum went through an inflationary period. The network issued 228,543 ETH while burning 107,725, resulting in a net increase of 120,818 ETH in circulation.
The decrease in network activity and gas fees contributed to this inflation, a situation that contrasts sharply with previous quarters where net emissions were often negative.
The performance of crypto exchanges also reflects these tensions. Centralized exchanges (CEX) saw their spot trading volume diminished by 12.2%, while decentralized exchanges (DEX) experienced a rise of 15.7%, reaching 370.7 billion dollars.
Uniswap remains the leader of DEX, but new players like Thruster and Aerodrome are starting to make a name for themselves.
Despite a challenging quarter, the crypto industry demonstrates impressive resilience and adaptability. The challenges are numerous, but so are the opportunities. The market is still waiting for its next bull run.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.