The cryptocurrency market ended Q3 2024 with a flat performance, ending with a market valuation of nearly $2.3 trillion. Despite this, Bitcoin's dominance remained unaffected while Ethereum struggled.
According to the latest analysis by Coingecko, the cryptocurrency market remained volatile in Q3 2024, ending the quarter with a slight 1% decline, leaving the total market capitalization at $2.33 trillion. Two of the top crypto assets reacted differently. While Bitcoin's dominance jumped to 53.6%, a significant increase, altcoins like Ethereum and BNB saw a decline.
Ethereum’s market share fell by 3.6% despite the launch of the Ethereum ETF in July. Experts attributed the decline to a decline in interest in the ETH ecosystem. Centralized exchanges (CEXs) also saw a 14.8% drop in trading volume, ending the quarter at $3.05 trillion.
Binance and Crypto.com Lead the CEX Market
While Binance remains the dominant CEX, its market share fell below 40% for the first time since 2022. Crypto.com emerged as the second largest CEX in September, with trading volume up 160.8% quarter-on-quarter. It held 14.4% market share in September.
Additionally, the market is expected to grow by a whopping 565%, with Polymarket capturing 99% of the industry’s market share. This increase is driven by interest in the 2024 US elections, which has driven betting volumes on Polymarket to increase by more than 713%.
Ethereum Layer-2 solutions also saw increased activity, with the number of transactions increasing by 17.2%. Base led this growth, accounting for 42.5% of transactions.
Solana and Base Challenge Ethereum’s DEX Dominance
Decentralized exchanges (DEXs) saw Solana and Base challenge Ethereum’s dominance, which dipped below 40% in Q3. Solana ended the quarter with a 22% market share, thanks to the popularity of meme coins, while Base saw trading volume spike by more than 30%.
Overall, Q3 2024 shows a fragmented but dynamic market, influenced by fears of an economic slowdown in the United States and escalating tensions in the Middle East. Bitcoin consolidates its strength, while other areas of the crypto ecosystem see mixed performance.
