Q2 2024 Crypto Market Review: Bitcoin Halving and Ethereum Activity Surge

In the second quarter of 2024, the cryptocurrency market experienced significant events, including the latest Bitcoin halving and unprecedented activity on the Ethereum network, according to Bitwise Investments.

Market Performance

Following a strong first quarter marked by the launch of Bitcoin exchange-traded products (ETPs) in the U.S., the crypto market took a step back in Q2. The Bitwise Large Cap Crypto Index, Bitcoin (BTC), and Ethereum (ETH) ended the quarter in the red. Despite the downturn, their year-to-date gains remained robust at 40%, 45%, and 50%, respectively.

Key Highlights

The quarter was notable for several major developments:

• Net flows to Bitcoin ETPs approached $15 billion.
• Stablecoin transactions hit a historic high of nearly $3 trillion.
• The Ethereum ecosystem saw new records in daily active addresses, validators, and transactions.
• Crypto miners faced new economic realities post-halving.
• Congress showed unprecedented bipartisan support for crypto, as lawmakers deliberated the FIT21 crypto framework bill.

Bitcoin Halving

The fourth Bitcoin halving event was a significant milestone. This event, which occurs approximately every four years, reduces the rewards for mining new Bitcoin blocks by half, impacting the supply dynamics and economics for miners.

Ethereum's Surge

Ethereum also made headlines with record-breaking activity. The network achieved new heights in daily active addresses, validators, and transactions, reflecting its growing adoption and utility.

Stablecoin Transactions

Stablecoin transactions reached nearly $3 trillion, underscoring their increasing role in the crypto ecosystem as a medium of exchange and a store of value.

Legislative Support

On the legislative front, the U.S. Congress demonstrated a significant shift in attitude towards cryptocurrency, with bipartisan support for the FIT21 crypto framework bill. This development suggests a growing recognition of the importance of regulatory clarity in fostering innovation and growth in the crypto sector.

Conclusion

Despite the mixed performance in Q2, the underlying trends and developments point to a maturing market with growing institutional interest and legislative support. For a detailed analysis of these trends and more, refer to the full report by Bitwise Investments.

About Bitwise

Bitwise Asset Management is the largest crypto index fund manager in America. It provides a range of index and active solutions across ETFs, separately managed accounts, private funds, and hedge fund strategies. Bitwise is known for its expert research, commentary, and deep access to the crypto ecosystem. The firm is backed by leading institutional investors and has offices in San Francisco and New York.