Examining the crypto market from the perspective of website traffic: This round of bull market is still in the accumulation stage
Original title: What does Web Traffic tell us about the Blockchain Market?
Original source: Tiger Research
Original compilation: Deep Chao TechFlow
Summary of this article
Network Traffic Analysis of Blockchain Market: In blockchain market analysis, network traffic is a neglected analysis factor. When looking at the market through web traffic, there is no explosive growth in traffic during the current period compared to past boom periods, raising questions about the markets vitality.
Cryptocurrency Prices and Web Traffic: While web traffic for both centralized exchanges and DeFi has remained flat, overall cryptocurrency prices have increased significantly. Unlike the market in the past, which was driven by retail investors, this is likely due to the influx of outside institutions such as ETFs.
The difference between DeFi analysis tools and DeFi network traffic: Although the traffic of analysis tools like DEX filters is growing steadily, the network traffic of traditional DeFi services is relatively low. This suggests that investors are more selective when making actual trading or investment decisions, rather than frequently accessing analytical tools for market information.
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The recent rise in cryptocurrency prices has led many to believe that the market has re-entered a bull cycle. However, rising cryptocurrency prices do not equate to increased market activity. To accurately determine market activity, many other factors must be considered.
These include common market metrics like DAU and MAU, as well as blockchain-specific metrics like cryptocurrency trading volume, number of active wallets, and TVL. Many market analyzes exploit these factors. Solana Network TVL, which surpassed $4 billion and reached its highest level in two years, is one example.
Network traffic is rarely used as an analytical 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, one 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 to 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 website
CoinMarketCap dominates the web traffic rankings 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 remained stable rather than rising, also unlike previous market booms.
3.DeFi
When looking at the network traffic of major DeFi projects, PancakeSwap dominates, followed by Uniswap, Raydium, and others. PancakeSwaps high traffic is likely due to various features, including games and NFTs. These are not core features, but they are factors that attract users, which 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 tools
With so many coins being listed every day, it’s crucial to have a tool that can view and analyze them at a glance. Currently, DEX screener dominates 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 analytical 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.
in conclusion
In this article, we examine the blockchain market using the often-overlooked network traffic, which is one of 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.
