Examining the crypto market from the perspective of website traffic: This bull market is still gathering momentum

Original title: What does Web Traffic tell us about the Blockchain Market?

##Original author: Tiger Research

Compiled by Shenchao TechFlow

##Abstract of this article

Network traffic is often overlooked in analyzes of the blockchain market, but it is actually an important factor. Recent data suggests that web traffic has not grown significantly during the current period compared to past boom periods, raising concerns about the market's vitality.
While network traffic on centralized exchanges and DeFi platforms has remained stable, overall cryptocurrency prices have seen significant increases. Unlike previous market situations dominated by retail investors, this rise is likely to stem from the influx of external institutions such as ETFs. This indicates that institutional investors’ interest in the cryptocurrency market is increasing and their participation may have a significant impact on the market landscape. As more traditional financial institutions and investors enter the space, cryptocurrency price volatility and market size are likely to expand further. This trend also reflects the disparity between crypto
DeFi analytics tools and DeFi network traffic: While analytics tools like DEX Filter have seen steady growth in traffic, traditional DeFi services The network traffic is relatively low. This suggests that investors prefer to be more selective when actually making trading or investment decisions, rather than frequently accessing analytical tools for market information.
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The rise in cryptocurrency prices has sparked the belief among many that the market has re-entered a bull cycle. However, rising prices do not necessarily mean increased market activity. To accurately assess market activity, a variety of factors must be considered.

These include common market metrics like DAU and MAU, as well as blockchain-specific metrics like cryptocurrency transaction volume, number of active wallets, and TVL. Many market analyzes exploit these factors. Solana Networks, which surpassed $4 billion in TVL and reached its highest level in two years, is one example of this.

"Network traffic" is rarely used as an analysis factor. Due to the nature of blockchain services, real user activity is very important, so network traffic, including visitors, is used as an internal reference metric for the project, but not as an analysis factor.

However, network traffic analysis can help in analyzing the market in depth as it can reveal public interest in services and their detailed regional information. In this report, we will use network traffic to analyze the blockchain market status in 2024, provide a different perspective from other reports on an industry basis, and help you understand the market from a realistic perspective.

1.CEX

With the recent surge in cryptocurrency prices, the area of ​​greatest concern is undoubtedly cryptocurrency exchanges. By analyzing the network traffic of major cryptocurrency exchanges like Binance, we can see that the current market is not as exuberant as previous periods.

Comparing Bitcoin price and trading volume with each exchange’s network traffic further illustrates the differences from past booms. Bitcoin prices have surged while trading volumes and exchange network traffic have remained low, suggesting it may be transactions outside of cryptocurrency exchanges such as ETFs that are influencing the price increase.

If this trend accelerates, we believe retail investors will play a smaller role during this period than in the past, with ETFs and other traditionally traded financial products likely to play a larger role.

2. Cryptocurrency Ranking Websites

CoinMarketCap dominates the web traffic ranking of cryptocurrency ranking portals, followed by Coingecko. The difference in network activity between CoinMarketCap and Coingecko is huge.

Web traffic for all cryptocurrency ranking sites has remained stable rather than rising, which is also different from previous market booms.

3.DeFi

When looking at the network traffic of major DeFi projects, PancakeSwap dominates, followed by Uniswap, Raydium, etc. PancakeSwap’s high traffic is likely due to various features, including games and NFTs. These are not core features, but they are user attraction factors that are hard to find in other DeFi platforms.

Among the recently popular Solana DeFi, Raydium leads the pack, followed by Jup and Orca. After the FTX bankruptcy, we can see that trading volume first dropped and then rebounded, which is in line with the trend of actual trading volume.

4.DeFi Screening Tool

#With so many tokens being listed every day, it’s crucial to have a tool that can view and analyze them at a glance . Currently, DEX screeners dominate web traffic, while DexGuru has been trending downward since peaking in early 2022.

When comparing the average network traffic of DeFi screening tools to the network traffic of each major DeFi project, the gap is driven by differences in usage processes. Typical DeFi investors use analytics tools to track their crypto assets and access these tools frequently. Typical DeFi tools lack additional features, so traffic may only be focused on making investment decisions. In addition, some DeFi analysis tools also support transactions such as swaps, which also adds more reasons for users to stay.

Conclusion

In this article, we examine the blockchain market using the often-overlooked network traffic, which is one of the various factors used when analyzing the blockchain market. The most impressive finding is that, unlike in the past, the market is not currently experiencing an explosion in traffic. Even taking into account the evolution of services and the fact that many have been released as applications, the numbers are still low, so it is difficult to conclude based on this indicator alone that the cryptocurrency market has reached a period of prosperity.

We hope this analysis will allow many market participants to gain a more comprehensive understanding of the blockchain market through the lens of network traffic activity.

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