The first half of 2024 has marked a pivotal phase in the evolution of the cryptocurrency market. With institutional adoption accelerating and retail sentiment shifting, the landscape is undergoing a profound transformation. Drawing from world-class crypto data and user behavior insights from CoinMarketCap, this comprehensive H1 2024 report unpacks key market trends, sector performance, and global user dynamics shaping the current bull cycle.
Market Overview: Bullish Sentiment Amid Cooling Liquidity
As of mid-2024, the global crypto market cap stands at $2.3 trillion**, reflecting a **14.5% decline in Q2** despite a strong start to the year. The 24-hour trading volume surged to **$79.4 billion, up 223% quarter-over-quarter, signaling sustained interest even during a correction phase.
Market sentiment, as measured by the Crypto Fear and Greed Index, sits at 49 (Neutral), having trended downward from 69 in May to 47 earlier in the month. This shift suggests growing caution among investors following the March price surge.
Bitcoin Dominance remains elevated at 53%, indicating that altcoins have yet to enter a seasonal rally. Meanwhile, liquidity has dropped 18.5% month-on-month, reaching levels reminiscent of the September 2023 bear market. Despite bullish macro drivers—such as the SEC’s approval of Ethereum spot ETFs and expectations of U.S. interest rate cuts—on-chain activity has slowed, with Ethereum gas fees hitting record lows (as low as 2 gwei) and minimal ETF inflows.
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Is History Repeating? Parallels and Divergences in the 2024 Bull Run
Similarities to Past Cycles
- Bitcoin Leads the Charge: Historically, Bitcoin dominates early bull phases. BTC Dominance (BTC.D) has risen from 38.4% in November 2022 to 53% in 2024, mirroring past cycles.
- Stablecoin Supply Surge: A 19.8% increase in stablecoin supply since January signals fresh capital entering crypto—a classic bull market precursor.
- Exchange Outflows: Reduced BTC supply on exchanges reflects long-term holding behavior, similar to trends seen before the 2021 rally.
Key Differences This Cycle
- Milder Drawdowns: The current bull cycle has seen a maximum drawdown of 18%, far less severe than the >50% drops in previous cycles—likely due to ETF-driven institutional stability.
- Pre-Halving All-Time High: Bitcoin hit $73,000 before the April halving, breaking historical precedent where ATHs followed supply shocks. This was fueled by spot Bitcoin ETF inflows.
Institutional vs. Retail Participation
While institutions have poured over $17.1 billion** into crypto—**$16.7 billion into Bitcoin—retail participation remains subdued. Metrics like Google search volume, YouTube subscriber growth, and app downloads suggest most retail investors are still on the sidelines.
This divergence underscores a new dynamic: a bull market driven by crypto natives and institutions, not mass retail adoption.
Sector Performance: Only Three Sectors Grew in Q2
Despite a harsh market environment—with 89% of sectors posting negative market cap changes—three areas showed resilience:
- Stablecoins (+8.6%)
- AI & Big Data (+2.5%)
- Real-World Assets (RWA)
The stablecoin sector saw explosive growth, driven by high-profile launches like Ethena (USDe) and Lista, alongside Tether’s staggering $4.52 billion Q1 profit—a figure comparable to 80% of Goldman Sachs’ revenue from a 50-person team. This profitability has attracted new entrants, especially as high interest rates and institutional inflows create fertile ground for yield-generating stablecoins.
Ecosystem Activity: Solana Leads Token Listings
Monitoring new token listings on CoinMarketCap reveals where innovation is concentrated:
- Solana: +20 new tokens in Q2
- Ethereum: +14
- Derivatives & Stablecoins: +5 and +4 respectively
While memecoins and AI showed signs of slowing in Q2, Solana’s ecosystem continues to expand rapidly.
Top Crypto Trends: Meme Coins, Solana, and AI
Meme Coins Dominate User Interest
For the first time, meme coins became the most viewed category on CoinMarketCap, capturing ~23% of all page views (over 25 million in June). This marks a cultural shift from DeFi and NFTs to speculative, community-driven assets.
Solana-based meme coins like WIF and BONK have outperformed Ethereum-based ones by nearly 8x year-to-date, attracting speculative capital and retail attention.
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Solana Challenges Ethereum’s Dominance
Solana now surpasses Ethereum in user traffic on CoinMarketCap, signaling growing popularity despite Ethereum’s technological lead. SOL leads in daily active addresses (1.6M vs. 1M for BNB) and NFT activity, thanks to low fees and fast transactions.
However, Ethereum remains dominant in DeFi (84.3% TVL share) and generates 70% of L1 daily revenue ($2.7M vs. SOL’s $900K).
AI Hype Cools After February Peak
After peaking in February, AI-related crypto interest dropped to just 6.4% of traffic share in June. Most popular AI tokens are now “meme-fied” concepts like Turbo, indicating more speculation than fundamental adoption.
Global User Trends: Brazil, India, and Indonesia Rise
User traffic data reveals a geographic shift:
- Brazil: Now second-largest traffic source (9%)
- India: 7.57%
- Indonesia: 6.5%
These markets are driving meme coin adoption, while traditional hubs like the U.S., U.K., and France see declining shares—reflecting a move from institutional to retail-driven narratives.
Layer-1 & Layer-2 Landscape
Top Smart Contract Platforms
- Ethereum: 62.11% L1 market share post-ETF approval
- BNB & Solana: Gaining momentum with $42B and $18B YTD growth
- Toncoin: Best performer (+221.5% YTD)
Layer-2 Leaders
- Arbitrum: $8.2B TVL
- Base: $6.8B TVL, fastest-growing with Coinbase integration
- Mode Network: 26x TVL growth due to airdrop incentives
Base recently overtook Arbitrum in user activity, boosted by Coinbase’s gas-free smart wallet launch.
Cross-Chain & NFT Developments
Bridges: Circle’s CCTP Leads
Circle’s CCTP is now the top cross-chain bridge by volume (15.6% market share), supported by integrations with MetaMask, Chainlink, and Wormhole. The top 5 bridges control only 51.8% of volume, indicating healthy competition.
NFTs: Bitcoin and Solana Take Over
Ethereum no longer leads in NFT trading volume. Bitcoin inscriptions (Ordinals, Runes) have pushed BTC slightly ahead, while Solana leads in user activity due to low fees.
However, post-Tensor airdrop, Solana NFT volumes have declined, reflecting broader market fatigue.
Gaming & RWA: Emerging Frontiers
Gaming: Pixels and Notcoin Shine
- Pixels (Ronin): 270% DAU growth since January
- Notcoin (TON): Reached 40M users, launched token at $1.05B market cap
Hyper-casual games are driving mass adoption on blockchain.
RWA: Institutional Tokenization Accelerates
- BlackRock’s BUIDL fund: $453M inflow in under three months
- Ondo Finance (ONDO): Up 634%, largest contributor to BUIDL
- USDe (Ethena): 934% market cap growth with 33.5% yield
Despite TVL at $4.39B (below last cycle’s $6.37B peak), RWA remains the fastest-growing sector.
Meme Coins & Political Tokens
Solana-based memes returned 8,469% on average vs. Ethereum’s 962%. Political memes like TRUMP (MAGA) gained over 5100%, fueled by campaign donations and U.S. election speculation.
Total political meme market cap: **$784M** out of $57.7B total meme coin value.
Frequently Asked Questions
Q: Is the crypto bull market still ongoing despite the Q2 dip?
A: Yes. While Q2 saw corrections and reduced liquidity, core indicators like ETF inflows, institutional adoption, and stablecoin growth confirm we’re still in a bull market—just in a consolidation phase.
Q: Why are meme coins outperforming DeFi and AI projects?
A: Retail investors are favoring high-risk, high-reward speculation over complex fundamentals. Low barriers to entry and viral social media trends amplify momentum.
Q: Can Solana overtake Ethereum?
A: Not yet. While Solana leads in user activity and memes, Ethereum dominates in DeFi TVL, developer activity, and institutional trust—especially after ETF approval.
Q: Are political meme coins a legitimate investment?
A: They’re highly speculative. While some gain short-term traction due to elections or celebrity endorsements, they lack intrinsic value and regulatory clarity.
Q: What drives stablecoin growth in 2024?
A: Institutional demand for yield (e.g., USDe), macroeconomic stability, and increasing use as trading pairs on exchanges.
Q: How do ETFs impact Bitcoin and Ethereum prices?
A: ETFs bring institutional capital, reduce volatility over time, and increase asset legitimacy—potentially leading to sustained price appreciation as demand outpaces supply.
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