CoinGecko Exposes The Mutations Of The Crypto Market, Towards A New Cycle?

CoinGecko, the go-to platform for crypto asset data, has just released its highly anticipated report on the crypto industry for the third quarter of 2024. This in-depth analysis reveals a resilient market in the face of high volatility, maintaining a global capitalization of about $2.3 trillion despite global economic turmoil.

Bitcoin consolidates its dominant position

The CoinGecko report highlights the remarkable performance of Bitcoin, which has strengthened its dominance to reach 53.6% of the total crypto market capitalization. This increase of 2.7% compared to the previous quarter came at the expense of major altcoins, notably Ethereum, whose market share fell to 13.4%.

According to CoinGecko analysts, this shift in favor of Bitcoin is explained by its status as a safe haven within the crypto ecosystem, particularly attractive in uncertain economic contexts.

Volatility was present throughout the quarter. After peaking at $2.61 trillion at the end of July, the market experienced a sharp drop in early August in response to global economic tensions.

Monetary policy decisions, including the Fed’s status quo and the surprising rate hike in Japan, played a key role in these fluctuations.

A rapidly changing crypto ecosystem

Beyond price fluctuations, the CoinGecko report highlights major structural changes in the industry. Ethereum Layer 2 scaling solutions have experienced impressive growth, with a 17.2% increase in transactions, driven notably by the Base platform.

Meanwhile, the trading volume on centralized platforms decreased by 14.8%, settling at $3.05 trillion. This decline contrasts with the spectacular rise of prediction markets, whose activity surged by 565.4%, driven by growing interest in the upcoming US elections.

Thus, the crypto market remains dynamic and innovative, despite an uncertain economic context. While volatility remains high, the resilience of the sector and the emergence of new uses hint at potential growth for the upcoming quarters.