Crypto Market Update!! This H1 Report is a Must-Watch!
Can you believe we are already into the second half of this year? What a whirlwind it’s been for crypto so far! In fact, it’s been so dizzying that it can often be difficult to get a grip on what has been going on. So, when a major crypto tracking site releases a report covering the first 6 months of 2024, it’s best to pay attention. Today, we’ll be summarizing this report and telling you what it could all mean for crypto. The report that we’ll be summarizing today comes from Coin Market Cap and is titled “According to CMC H1 2024”.
The Market Overview
The authors highlight that the global crypto market cap is $2.3 trillion, down 14% in Q2, but the average hourly traded volume is up by more than 3x to $79.4 billion. The fear and greed index, which was at a neutral 49 when the report was published, has been trending towards fear since Q1. However, at the time of shooting, the index is at 57, comfortably in the neutral territory. Bitcoin’s dominance is at 53%, indicating no altcoin season. Liquidity is down by 18% in the last month, and market activity has slowed significantly since March, exhibiting characteristics akin to a bear phase within the previous bull market trend.
- Bitcoin’s dominance at 53%
- Liquidity down by 18%
History Repeating Itself?
To determine if history is indeed repeating itself or if something completely different is happening, the authors present arguments for both possibilities. BTC historically leads bull runs, and the current Bitcoin dominance level shows this is still the case. However, there has been a 20% increase in stable coin supply and a decrease in BTC on exchanges, signaling an influx in capital and a shift to Cold Storage. The authors conclude that we are in the middle of a bull market, driven by institutional investors and crypto natives, while retail users are still notably absent.
- Bitcoin historically leads bull runs
- 20% increase in stable coin supply
Market Sentiment and Momentum
Coin Market Cap’s most popular categories now show memecoins holding the top spot, surpassing smart contracts, DeFi, and NFT narratives. Meme coins accounted for around 23% of Coin Market Cap’s page visits. The Salana ecosystem has surged in popularity, overtaking Ethereum’s ecosystem, while AI’s popularity is declining, accounting for just 7% of page visits. The surge in popularity of Salana ecosystem indicates an anti-establishment mentality, with newly launched meme coins gathering momentum faster than in any previous cycle.
- Memecoins hold the top spot
- Salana ecosystem surpasses Ethereum
Smart Contract Layer Ones and Transaction Revenue
Smart contract layer ones have a combined market cap of under $700 billion, with Ethereum’s dominance at 62%, the highest it’s been this year so far. Transaction revenue on Ethereum has surpassed all other chains combined, with record low gas fees in Q2. Ethereum accounts for 70% of daily fee revenue among major layer ones, with Ton Coin surging by more than 300% since the start of the year, and BNB and Ethereum growing by 83% and 45%, respectively.
- Transaction revenue on Ethereum surpasses all other chains combined
- Ethereum accounts for 70% of daily fee revenue
Layer 2’s and Real World Assets
Arbitrum and Bas have dominated Layer 2 growth in the first half of this year, with Bas seeing a 10x increase in TVL. In the Bitcoin ecosystem, more Layer 2 protocols aiming for faster and cheaper transactions have emerged. Fiat-backed stablecoins make up almost 97% of total market cap for real-world assets, with USDT and USDC seeing significant growth since the start of the year. Ethereum ETFs have seen a surge in assets under management, with the sector poised for further growth.
- Arbitrum and Bas dominate Layer 2 growth
- USDT and USDC stablecoins see significant market cap growth
Closing Thoughts on the Market
As the crypto market continues to evolve and adapt, it’s essential to stay informed and educated on the latest trends and developments. While retail interest may be slow at the moment, the potential for growth and innovation in the crypto space remains vast. By staying engaged and informed, you can position yourself for success in this ever-changing landscape of digital assets and blockchain technology. Remember, the key to success in crypto is not just in riding the waves of market trends but also in identifying hidden gems that could propel you to life-changing gains. So, keep exploring, stay informed, and be ready for the next wave of opportunities in the crypto market!
Hot Take
Stay informed, stay engaged, and be prepared for the next wave of opportunities in the crypto market. With a wealth of potential waiting to be uncovered, now is the time to delve deeper, explore further, and position yourself for success in the ever-evolving world of digital assets and blockchain technology. By staying ahead of the curve and seizing the moment, you can unlock a world of possibilities and potential gains that could shape your crypto journey for years to come. So, keep learning, keep exploring, and stay tuned for what lies ahead in the dynamic and exciting landscape of the crypto market!
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