The recent surge in cryptocurrency prices suggests a return to the bullish cycle, but price increases alone don't reflect overall market activity. Understanding market dynamics requires considering various factors such as DAU, MAU, trading volume, active wallets, and TVL. While web traffic analysis is often overlooked, it offers valuable insights into user interest and demographics. However, a new report by Tiger Research, throws cold water on this notion by analyzing web traffic data.
In this report, we'll use web traffic data to analyze the 2024 blockchain market across sectors, providing a unique perspective to understand market trends realistically.
CEX Sector
Source: Tiger Research
With the recent cryptocurrency price surge, cryptocurrency exchanges (CEXs) have become a focal point. Analyzing web traffic on top exchanges like Binance reveals a less pronounced market boom compared to previous periods.
Source: Yahoo Finance, Semrush, Tiger Research
Source: Yahoo Finance, Semrush, Tiger Research
Comparison of Bitcoin price and trading volume with exchange web traffic highlights the disparity from previous booms. While Bitcoin price has surged, trading volume and exchange web traffic have remained subdued. This suggests that factors beyond typical retail trading, such as the influence of ETFs, may be driving the price uptick.
If this trend persists, we anticipate a reduced role for retail investors compared to previous cycles, with ETFs and other conventional financial instruments exerting greater influence.
Read more: The Bitcoin Halving is About a Month Away, a Countdown to Potential Price Impact
Crypto Ranking Site
Source: Tiger Research
CoinMarketCap emerges as the dominant player in web traffic among cryptocurrency ranking portals, primarily showcasing cryptocurrency rankings and trading volumes. Coingecko follows closely behind, but the gap in web activity between the two is notably significant.
Interestingly, web traffic across all cryptocurrency ranking portals remains stagnant rather than experiencing a surge, distinguishing this period from previous market booms.
DeFi
Source: Tiger Research
Source: PancakeSwap
Among the major DeFi platforms, PancakeSwap emerges as the leader, followed by Uniswap, Raydium, and others. PancakeSwap's popularity is attributed to its diverse features, including games and NFTs, which contribute to user engagement—a characteristic less prominent in other DeFi platforms.
Read more: Bitcoin’s Year-End Target Price Raised to $90,000 and Updates Mining Stock Forecast
Source: Tiger Research
In Solana's DeFi ecosystem, Raydium takes the lead, followed by Jup and Orca. Following the FTX bankruptcy, trading volumes experienced a decline before rebounding, aligning with real-world volume trends.
DeFi Screening Tool
Source: Tiger Research
In a landscape flooded with new tokens, having a tool for quick analysis is crucial. Presently, DEX screener dominates web traffic, while DexGuru has experienced a decline since its peak in early 2022.
Source: Tiger Research
When comparing the average web traffic of DeFi screening tools with major DeFi projects, usage disparities become apparent. Traditional DeFi investors frequently use analytics tools to monitor their crypto assets, resulting in consistent visits. Conversely, general DeFi tools may experience traffic spikes only during investment decisions. Additionally, some DeFi analytics tools offer trading functionalities, further incentivizing user engagement.
Conclusion
In this report by Tiger Research, we delved into the blockchain market using web traffic data—a factor often overlooked in market analysis. The most noteworthy observation is the absence of a significant surge in web traffic, contrasting with previous market cycles. Despite the evolution of services and the proliferation of mobile apps, traffic figures remain relatively subdued. Therefore, it's challenging to assert that the cryptocurrency market is currently in a booming phase based solely on this metric.
We trust that this analysis will provide valuable insights for market participants, offering a broader perspective on the blockchain market through the lens of web traffic activity.
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Disclaimer: This response provides information based on available data and general analysis. It does not constitute financial advice. Always perform your own due diligence and consult with a professional financial advisor before making investment decisions.