Coingecko, the leading crypto-tracking website in the industry recently released its Q2 report which revealed that Memecoins were the major market movers in the second quarter of the year and the total market capitalization of cryptocurrencies dropped by 14% within the time frame.
The report revealed that memecoins were the center of attraction in the industry in Q2 and the S&P 500 outperformed the total market capitalization of cryptocurrencies which declined by 14%.
Crypto Market Cap Drops in Q2
The total crypto market capitalization lost $408.8 billion in the last three months closing the Q2 with a total market capitalization of $2.43 trillion. The market capitalization fell short and was unable to hit a new all-time high.
In Addition, Coingecko also revealed that the crypto market capitalization was outperformed by the S&P 500, which registered a 3.9% increase.
This led to the correlation between the total crypto market cap and the S&P 500 plummeting to 0.16 in Q2, from 0.84 in Q1.
Volatility was another metric factored in by the Coingecko team. Crypto volatility remained high in Q2, with the total crypto market cap at an annualized volatility of 48.2%. Bitcoin volatility stood at 46.7% while the S&P 500 had a lower volatility of 12.7%.
Memecoins led the industry in Q2
According to the report, Memecoins were the most popular narrative in Q2 2024 accounting for 14.3% of the market share.
Memecoins were followed closely by Real World Assets (RWA) and Artificial Intelligence (AI) and the three categories of crypto assets had a collective 35.7% of market share.
The memecoin frenzy was in full throttle last quarter with various memecoin projects surging in prices and making their investors money.
The memecoin category was boosted in popularity by the joining of top celebrities like Andrew Tate, Iggy Azalea, and Caitlyn Jenner who all launched their individual meme coin projects.
The PoliFi category in the memecoin sector also dominated the industry headlines as they continue to be influenced by activities surrounding the November US presidential elections. The latest was the assassination attempt on Donald Trump which saw the Maga (TRUMP) surge by 46.9%
In the Blockchain category, 4 out of 49 blockchain ecosystems, Solana, Ethereum, Base, and TON made it into the top 15 crypto narratives. Solana and Base were the most popular ecosystems, capturing a 22.9% share of market attention.
Other Q2 data revealed by the report include Ethereum performance in the quarter, Bitcoin mining hash rate, and trading volumes in centralized and decentralized exchanges.
What to Know
- Market capitalization (market cap) is a key metric in the cryptocurrency industry that shows the total value of a cryptocurrency. It’s calculated by multiplying the current price of a cryptocurrency by the total number of coins in circulation. The total market capitalization of cryptocurrency stands at $2.5 trillion at the time of writing this report.
- Meme coins are a type of cryptocurrency that are inspired by internet memes, pop culture references, or trends. They are often created for fun and are mostly propelled by a community. Popular memecoins include Dogecoin and Floki.