Markets
Meme Coins, RWA, AI and DePin
In Q2 2024, the cryptocurrency market displayed a distinct mix of emerging narratives and significant price movements. Despite a 14.4% drop in the total cryptocurrency market cap, ending the quarter at $2.43 trillion, several sectors, such as meme coins, real-world assets (RWA), artificial intelligence (AI), and decentralized physical infrastructure networks (DePin), stood out.
Despite Bitcoin’s halvings, the market performed poorly in Q2 2024. Only a select few sectors saw gains.
Crypto Dominant Narratives in the 2nd quarter of 2024
Meme coins continue to intrigue the marketwith narratives centered around cat-themed tokens rising to the top 15 crypto narratives. Four of the top 15 most discussed crypto narratives were related to meme coins. Notably, blockchain ecosystems such as Solana (SOL), Ethereum (ETH)Base and TON also remained prominent, with Solana and Base together capturing 22.9% of the market’s attention.
Read more: 7 Meme Coins and Altcoins That Are Trending in 2024
The spotlight has also turned heavily towards the integration of RWA and AI within blockchain ecosystems. DePin, a relatively new narrativehas attracted attention for promising to revolutionize infrastructure through the decentralization of physical assets, adding a layer of innovation to blockchain applications.
Despite the overall market downturn, these narratives have exhibited resilience and growth. This shift signifies a shift in investor preferences toward thematic and speculative investments. Furthermore, the annualized total volatility of the cryptocurrency market stood at 48.2%, reflecting ongoing uncertainty and rapid shifts in investor sentiment.
Most Popular Crypto Narratives. Source: CoinGecko
The CoinGecko report also discusses other notable events in Q4 2024. For example, Mount Gox Administrator started moving a stock of 140,000 BTC and the German government starts selling seized Bitcoincoinciding with sudden market reactions.
Furthermore, Ethereum Witnessed an Inflationary Shift in Q2with a net addition of 120,818 ETH to its circulating supply. This marked a significant shift from its previous deflationary trend, influenced by a 66.7% reduction in the burn rate as network activity slowed.
Cryptocurrency exchanges have seen divergent trends. Centralized exchanges (CEXs) like Binance and Bybit have experienced mixed fortunes.
Binance’s market share remained at 45% despite the decline in trading volume. Meanwhile, Bybit’s market share increased to 12.6%. Decentralized exchanges (DEXs) such as Uniswap and emerging platforms Thruster and Aerodrome saw substantial increases in volume. They benefited from the fluctuation in meme coin trading and airdrop activity.
Read more: Best Upcoming Airdrops in 2024
In an interview with BeInCrypto, Bobby Ong, co-founder of CoinGecko, shared that the outlook for the second half of 2024 remains cautiously optimistic.
“The cryptocurrency market entered a period of consolidation post-Bitcoin Halving amid mixed developments in Q2, with the token airdrops in particular, under scrutiny. While the outlook for the second half of 2024 is murkier, we see positive signs including improving macroeconomic conditions and teams continuing to build regardless of prices,” Ong told BeInCrypto.
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