Analysis of Internet Traffic in the Blockchain Market: In blockchain market analysis, internet traffic is an overlooked factor. Observing market trends through internet traffic, it can be seen that the current period has not experienced explosive growth in traffic compared to past prosperous periods, which raises doubts about market vitality.
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CEX
Cryptocurrency Ranking Websites
DeFi
DeFi Screening Tools
Conclusion
Cryptocurrency Prices and Internet Traffic: Despite stable internet traffic for centralized exchanges and DeFi, overall cryptocurrency prices have increased significantly. Unlike past markets driven by retail investors, this is likely due to the influx of external institutions such as ETFs.
Differences between DeFi Analysis Tools and DeFi Internet Traffic: While the traffic for analysis tools like DEX screeners has steadily increased, 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 surge in cryptocurrency prices has led many to believe that the market has entered a new bull cycle. However, price increases in cryptocurrencies do not necessarily indicate increased market activity. To accurately determine market activity, many other factors must be considered.
These factors include common market indicators such as DAU and MAU, as well as blockchain-specific indicators such as cryptocurrency trading volume, active wallet count, and TVL. Many market analyses utilize these factors. Solana’s network TVL has exceeded $4 billion, reaching its highest level in two years, serving as an example.
“Internet traffic” is rarely used as an analytical factor. Due to the nature of blockchain services, real user activity is crucial, so internet traffic, including visitors, is used as an internal reference indicator for projects but not as an analytical factor.
However, analyzing internet traffic 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 utilize internet traffic analysis to examine the state of the blockchain market in 2024, providing a different perspective on an industry-by-industry basis compared to other reports and helping you understand the market from a realistic standpoint.
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With the recent surge in cryptocurrency prices, the most prominent area of interest is undoubtedly cryptocurrency exchanges. By analyzing the internet traffic of major cryptocurrency exchanges such as Binance, we can see that the current market is not as prosperous as previous periods.
Comparing Bitcoin prices and trading volume with the internet traffic of each exchange further highlights the differences from past prosperous periods. Bitcoin prices have skyrocketed, while trading volume 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 in the past, and ETFs and other traditional financial products may play a larger role.
CoinMarketCap dominates the internet traffic ranking of cryptocurrency ranking portals, followed by Coingecko. The difference in internet activity between CoinMarketCap and Coingecko is significant.
The internet traffic for all cryptocurrency ranking websites remains stable rather than increasing, which is different from past 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 features, but they are factors that attract users, which are difficult to find on other DeFi platforms.
In the recent popular Solana DeFi, Raydium leads, followed by Jup and Orca. We can see a decline and rebound in trading volume after the bankruptcy of FTX, which aligns with the trend of actual trading volume.
Having a tool that allows for a clear view and analysis of the numerous tokens listed daily is crucial. Currently, DEX screeners dominate in terms of internet traffic, while DexGuru has been declining since reaching its peak in early 2022.
The difference in internet traffic between average DeFi screening 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 cryptocurrency assets and frequently access these tools. General DeFi tools lack additional features, so traffic may only concentrate when making investment decisions. Furthermore, some DeFi analysis tools also support exchanges and other transactions, which provide users with more reasons to use them.
In this article, we used 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 internet 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 reaching a prosperous period based solely on this indicator.
We hope that this analysis will provide market participants with a more comprehensive understanding of the blockchain market from the perspective of internet traffic activity.
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