Examining the Cryptocurrency Market from the Perspective of Website Traffic: The Current Bull Market is Still in the Accumulation Phase
The market has not experienced explosive growth in traffic at the moment.Original Title: What does Web Traffic tell us about the Blockchain Market?
Original Author: Tiger Research
Compiled by: Deep Tide TechFlow
Abstract
Analysis of web traffic in the blockchain market: In blockchain market analysis, web traffic is an often-overlooked analytical factor. Observing the market through web traffic shows that, compared to past boom periods, the current traffic has not experienced explosive growth, raising questions about market vitality.
Cryptocurrency prices and web traffic: Although the web traffic of centralized exchanges and DeFi remains stable, the overall cryptocurrency prices have significantly increased. Unlike past market booms driven by retail investors, this rise is likely due to the influx of external institutions like ETFs.
Differences in DeFi analytical tools and DeFi web traffic: While the traffic of analytical tools like DEX screeners has steadily increased, the web traffic of traditional DeFi services remains relatively low. This indicates that investors are more selective when making actual trading or investment decisions, rather than frequently visiting analytical tools for market information.
Main Text
The recent rise in cryptocurrency prices has led many to believe that the market has re-entered a bull cycle. However, an increase in cryptocurrency prices does not equate to an increase in market activity. To accurately determine market activity, many other factors must be considered.
These include common market indicators such as DAU and MAU, as well as blockchain-specific metrics like cryptocurrency trading volume, active wallet counts, and TVL. Many market analyses utilize these factors. For example, the Solana network's TVL exceeding $4 billion, reaching a two-year high, is one such instance.
"Web traffic" is rarely used as an analytical factor. Due to the nature of blockchain services, real user activity is crucial, thus web traffic, including visitors, is used as an internal reference metric for projects, but not as an analytical factor.
However, web traffic analysis can help provide deeper insights into the market, as it can reveal public interest in services and detailed regional information. In this report, we will leverage web traffic analysis to examine the state of the blockchain market in 2024, providing a perspective different from other reports by industry, and helping you understand the market from a realistic standpoint.
1. CEX
With the recent surge in cryptocurrency prices, the most watched area is undoubtedly cryptocurrency exchanges. By analyzing the web traffic of major cryptocurrency exchanges like Binance, we can see that the current market's prosperity is not as heated as in previous periods.
Comparing Bitcoin prices and trading volumes with the web traffic of each exchange further illustrates the differences from past boom periods. Bitcoin prices have surged significantly, while trading volumes and exchange web traffic remain low, indicating that the price increase may be influenced by trading from outside cryptocurrency exchanges, such as ETFs.
If this trend accelerates, we believe that the role of retail investors during this period will be smaller than in the past, with ETFs and other traditional trading financial products potentially playing a larger role.
2. Cryptocurrency Ranking Websites
CoinMarketCap dominates the web traffic rankings among cryptocurrency ranking portals, followed by Coingecko. The difference in web activity between CoinMarketCap and Coingecko is quite significant.
The web traffic of all cryptocurrency ranking websites remains stable rather than increasing, which also differs from past market boom periods.
3. DeFi
When examining the web traffic of major DeFi projects, PancakeSwap leads, followed by Uniswap, Raydium, and others. The high traffic of PancakeSwap is likely due to various features, including games and NFTs. These are not core functionalities, but they are factors that attract users, which are hard to find on other DeFi platforms.
In the recently popular Solana DeFi, Raydium leads, followed by Jup and Orca. After the FTX bankruptcy, we can see that trading volumes initially dropped and then rebounded, aligning with the trend of actual trading volumes.
4. DeFi Screening Tools
With many tokens being listed daily, having a tool that allows for clear viewing and analysis of them is crucial. Currently, DEX screener dominates in web traffic, while DexGuru has been on a downward trend since peaking in early 2022.
When comparing the average web traffic of DeFi screening tools with the web traffic of each major DeFi project, the gap is driven by differences in usage processes. A typical DeFi investor will use analytical tools to track their crypto assets and frequently visit these tools. General DeFi tools lack additional features, so traffic may only concentrate on making investment decisions. Additionally, some DeFi analytical tools also support trades like swaps, which provides users with more reasons to engage.
Conclusion
In this article, we examine the blockchain market using often-overlooked web traffic, which is one of the various factors used in blockchain market analysis. The most striking finding is that, unlike in the past, the market is currently not experiencing explosive growth in traffic. Even considering the evolution of services and the fact that many services have been released as applications, the numbers remain low, making it difficult to conclude that the cryptocurrency market has reached a boom period based solely on this metric.
We hope this analysis can provide many market participants with a more comprehensive understanding of the blockchain market through the lens of web traffic activity.
