The second quarter of 2024 has been a rough one for the crypto industry. Bitcoin, the leading digital currency, has weathered a storm, dragging altcoins in its wake. The bull run is still awaited. Against this gloomy backdrop, CoinGecko’s report highlights the trends and upheavals that have marked the past few months, focusing in particular on the limited impact of Bitcoin’s halving and Ethereum’s challenges.
Crypto market capitalization falls
Like bitcoin, the crypto market has experienced a steep descent during the second quarter of 2024. Total capitalization fell by 14.4%rising from its near-record first-quarter total to $2.43 trillion, CoinGecko notes in a recent report.
This volatility is clearly different from that of the traditional market where The S&P 500 gained 3.9%.
Key figures: The crypto market posted an annualized volatility of 48.2%compared to 46.7% for Bitcoin.
According to Bobby Ong, COO of CoinGecko:
” The crypto market entered a post-Bitcoin halving consolidation phase, with mixed developments during the quarter “.
It seems like macroeconomic conditions are improving and that teams continue to build despite price fluctuations. This resilience could be a positive indicator for the futurebut the road remains strewn with pitfalls.
Bitcoin and Ethereum: A quarter under tension
There fourth Bitcoin halvingeagerly awaited, did not have the expected effect on prices. Bitcoin sailed between $58,000 and $72,000closing at $62,734, down 11.9%.
Trading volumes also declinedreaching on average $26.6 billion per daya decrease of 21.6% compared to the previous quarter.
Moreover, Ethereum went through an inflationary periodThe network issued 228,543 ETH while burning 107,725, resulting in a net increase of 120,818 ETH in circulation.
Lower network activity and gas costs contributed to this inflation, a situation in sharp contrast to previous quarters where net emissions were often negative.
There performance of crypto exchanges also reflects these tensions. Centralized exchanges (CEXs) saw their spot trading volume decline by 12.2%, while decentralized exchanges (DEXs) saw a 15.7% increase, reaching $370.7 billion.
Uniswap remains the leader of DEXsbut new players like Thruster and Aerodrome are starting to make a name for themselves.
Despite a tough quarter, the crypto industry is showing impressive resilience and adaptability. The challenges are many, but so are the opportunities. The market is still waiting for its next bull run.
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