Analysis of Internet Traffic in the Blockchain Market: Internet traffic is an overlooked factor in blockchain market analysis. When observing the market through internet traffic, it is evident that the current period has not seen explosive growth compared to past prosperous periods, which raises questions about market vitality.
In the recent surge of the BNB price, jumping 15% and breaking $630, CEX platform coins and the Solana sector have become hotspots in the market.
The best strategy for cryptocurrency market investment: focus on narrative opportunities rather than cash flow.
Cryptocurrency prices and internet traffic: Despite stable internet traffic for centralized exchanges (CEX) and decentralized finance (DeFi), overall cryptocurrency prices have significantly increased. This is likely due to the influx of external institutions such as ETFs, unlike the past market driven by retail investors.
Differences in DeFi analysis tools and DeFi internet traffic: While the traffic of analysis tools like DEX screeners steadily increases, the internet traffic for traditional DeFi services remains relatively low. This indicates that investors are more selective when making actual trades or investment decisions, rather than frequently accessing analysis tools for market information.
The recent increase in cryptocurrency prices has led many to believe that the market has reentered a bull market cycle. However, rising cryptocurrency prices do not necessarily indicate an increase in market activity. To accurately determine market activity, many other factors must be considered.
These factors include common market indicators such as DAU (Daily Active Users) and MAU (Monthly Active Users), as well as blockchain-specific indicators such as cryptocurrency trading volume, active wallet count, and TVL (Total Value Locked). Many market analyses utilize these factors. An example of this is Solana’s network TVL surpassing $4 billion, reaching the highest level in two years.
“Internet traffic” is rarely used as an analytical factor. Due to the nature of blockchain services, real user activity is crucial, and internet traffic, including visitors, is used as an internal reference indicator for projects but not as an analytical factor.
However, internet traffic analysis can help delve deeper into market analysis as it can reveal public interest in services and detailed regional information. In this report, we will utilize internet traffic analysis to analyze the blockchain market in 2024, providing a different perspective from other reports on an industry basis and helping you understand the market from a practical perspective.
With the recent surge in cryptocurrency prices, the most focused area is undoubtedly cryptocurrency exchanges. By analyzing the internet traffic of major cryptocurrency exchanges like Binance, we can see that the current market is not as prosperous as previous periods.
Comparing Bitcoin prices and trading volumes with the internet traffic of each exchange further explains the difference from past prosperous periods. While Bitcoin prices have risen significantly, trading volumes and exchange internet traffic remain low, indicating that the price increase may be influenced by transactions outside of cryptocurrency exchanges such as ETFs.
If this trend accelerates, we believe that the role of retail investors during this period will be smaller than before, and ETFs and other traditional financial products may play a larger role.
CoinMarketCap dominates the internet traffic ranking in cryptocurrency ranking websites, followed by Coingecko. The difference in internet activity between CoinMarketCap and Coingecko is significant.
The internet traffic for all cryptocurrency ranking websites remains stable instead of rising, which is different from previous market prosperous periods.
When examining the internet traffic of major DeFi projects, PancakeSwap takes the lead, 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 is difficult to find in other DeFi platforms.
In the recent popular Solana DeFi, Raydium leads, followed by Jup and Orca. We can see a decrease and then a rebound in trading volume after the bankruptcy of FTX, which is in line with the trend of actual trading volume.
Having a tool that allows a clear view and analysis of the tokens listed daily is crucial. Currently, DEX screeners dominate internet traffic, while DexGuru has been on a declining trend since early 2022.
The difference in internet traffic between average DeFi screener tools and the internet traffic of each major DeFi project is driven by differences in user processes. Typical DeFi investors use analysis tools to track their crypto assets and frequently access these tools. General DeFi tools lack additional features, so traffic may only be concentrated when making investment decisions. Additionally, some DeFi analysis tools support exchanges and other transactions, providing more reasons for users to stay.
In this article, we use the often overlooked internet traffic to examine the blockchain market, which is one of the various factors used in analyzing the blockchain market. The most impressive finding is that, unlike the past, the current market has not experienced explosive growth in traffic. Even considering the evolution of services and the fact that many services have been released as applications, the numbers are still low, making it difficult to draw conclusions about the cryptocurrency market’s prosperous period based solely on this indicator.
We hope that this analysis will provide a more comprehensive understanding of the blockchain market from the perspective of internet traffic activity for many market participants.
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