After a strong start to 2024, the total crypto market cap stayed relatively flat in Q2 reaching a high of $2.83 trillion on April 7th. Bitcoin is down 14% QTD and up 43% YTD, and ETH is down 5% QTD and up 48% YTD.  

In this Q2 report, we dig into the Bitcoin and Ethereum ecosystems providing market data to help investors understand what is happening in the crypto market. We hope you find the information below useful. Please reach out to the team at CoinFlip Preferred with any questions. 

Q2 Timeline

Market Snapshot

Total Crypto Market Cap

The total crypto market cap tracks the global market cap of all digital assets, which includes BTC, ETH, SOL, along with other altcoins and stablecoins. The total crypto market cap has remained flat in Q2 after a 60% rise in Q1 following gains in the broader market after the historic BTC ETF approvals.  

Source: CoinGecko

Crypto Dominance

Crypto dominance measures a particular crypto assets market cap as a percentage of the total market cap of all assets in the digital landscape. Bitcoin dominance is the most important statistic. Bitcoin dominance rose from 49.5% to 52% in Q2.  

Source: https://coinstats.app/

Bitcoin Analysis

Bitcoin (BTC) is the world’s largest and most widely known cryptocurrency and can be used to buy, sell and exchange directly, without an intermediary like a bank. Bitcoin was created in 2009 by Satoshi Nakamoto who described the need for an electronic payment system based on proof instead of trust. Since inception, Bitcoin has performed at an annualized growth rate of more than 140% and has a staggering total return greater than 114,702,455%. 

BTC Spot ETF Volumes

This metric tracks the daily volume for spot Bitcoin ETFs during Q2. Volumes have remained very strong after a stellar Q1. As of June 30, 2024, spot Bitcoin ETFs have accumulated roughly $54.57B of assets.  

Source: Yahoo Finance

BTC Supply on Exchanges 

This metric tracks the amount of Bitcoin that is available on global exchanges for purchase. As seen in this chart, the balances of BTC on exchanges drastically decreased in Q2 suggesting increased demand from ETFs and institutional investors. 

Source: Glassnode

BTC Price and Market Cap

The price of BTC fell by 7.91% in Q2 after several attempts to break the previous ATH set in Q1.  

Source: Glassnode

Bitcoin Fear and Greed

This chart measures the market sentiment of cryptocurrencies by assessing the magnitude of unrealized profit and loss held within the coin supply. This shows that overall Bitcoin investors are becoming cautious heading into Q3. 

Source: Glassnode

Bitcoin Hodlers

The long term BTC holder chart shows investors who have held for more than 155 days. As seen on the chart, long-term BTC holders have started buying and adding to their positions in Q2.  

Source: Glassnode

Source: Glassnode

Ethereum Analysis

Ethereum (ETH) is the second most popular cryptocurrency. Founded by Vitalik Buterin in 2015, ETH - unlike Bitcoin - is more than just a medium of exchange, but a decentralized computing network built on blockchain technology.  

ETH Price and Market Cap

The price of ETH fell by 8% in Q2 despite ETF approvals being announced.  

Source: Glassnode

ETH Number of Active Addresses

This chart tracks the number of addresses in the ETH blockchain that are active. This is an important metric to gauge how much ETH is making in overall transaction fees. The number of active addresses on the ETH blockchain rose 5% in Q2. 

Source: Glassnode

ETH Supply on Exchanges

This metric tracks the amount of ETH that is available on exchanges for purchase. As seen in this chart, the balances of ETH on exchanges decreased by 8% in Q2 as ETF approvals were announced.  

Source: Glassnode

ETH Burned Supply

Given that ETH has an inflationary supply, unlike Bitcoin, it is important to track how much ETH is being burned to reduce supply. ETH burned supply hit new ATHs in Q2, suggesting network activity remains robust.  

Source: Glassnode

ETH 2.0 Total Value Staked

Staking is an investment feature of Proof of Stake (PoS) blockchains in which token holders pledge their assets to support the network’s security in exchange for rewards in the form of additional tokens. Holders must pledge a minimum of 32 ETH and run a validator node to stake. The amount staked in Q2 reached new ATHs suggesting investors continue to remain bullish on the long-term outlook for the ETH ecosystem. 

Source: Glassnode

ETH Total Value Locked in DeFi

Total Value Locked (TVL) is a measure of financial activity and liquidity within the Ethereum ecosystem. TVL continues to stay strong, showing increased interest in Defi. 

Source: Glassnode

Wrapping it Up

Q2 was a period of cautious growth for the crypto market, with Bitcoin and Ethereum experiencing slight declines in price from their respective ATHs but maintaining strong year-to-date gains. Key developments, such as the approval of spot Bitcoin and Ethereum ETFs in Hong Kong and the US, and significant institutional investments, highlight the growing acceptance and integration of cryptocurrencies into the global financial system. Despite the price fluctuations, the increase in long-term holders and active addresses for both BTC and ETH suggests a bullish sentiment among investors, indicating a positive outlook for the crypto market heading into Q3. 

In Case You Missed It (ICYMI)

Explore our top blog articles from this quarter

• Discover the key takeaways from the Bitcoin Asia Conference in Hong Kong, including Hong Kong's favorable regulatory environment, the strategic use of Bitcoin in corporate treasuries, and the growth of Bitcoin Layer 2 protocols.

• Explore how markets react to Fed updates, utilizing natural language processing (NLP) to uncover investment signals from Fedspeak. Understand the impact of hawkish and dovish statements on assets like Bitcoin. 

• Discover the pivotal role of institutional investors in shaping the Bitcoin landscape amid global economic shifts and geopolitical tensions. 

• There's an upward trend in U.S. debt, job creation, and bitcoin adoption, as Asian markets look into Bitcoin ETFs. Learn more. 

As we enter the third quarter, we are thrilled to continue delivering crypto news and market content that informs, inspires, and engages our readers. We invite you to stay connected and watch for upcoming product announcements and exclusive promotions. Subscribe now to stay ahead of the curve and never miss an update!