Finance Research Study Reveals Cryptocurrency Exchanges Are Losing Users Fast
Breaking Research – Crypto Exchanges Are Bleeding Users
The last few months have not been on the same upwards trend as they were before for the cryptocurrency industry. With the reduced rate of volatility, the markets have been gradually moving south since at least January 2018.
The distinct lack of big buyers has been apparent, along with a diminished interest can be seen among the mass population of main crypto exchanges.
According to a recent, brief study by the company, Finance Magnates regarding the popularity of the biggest trading platforms in terms of their average volume. According to the accompanying resources, as provided by SimilarWeb, the total usage data of the Top 5 venues show a significant decline in the number of average visits.
Out of all the crypto exchanges out there, Binance is the single most often visited websites among all the leading crypto coin exchanges, the decline in the amount of visits to the site is still quite startling. According to its performance in February 2018, Binance clocked up a total of 79.3 million visits per month. In contrast to July 2018, it only had roughly 39.2 million visits.
The remaining crypto venues in these comparative studies also share a similar pattern of decline. Among the ten leading cryptocurrency exchanges, ZB.COM registered the biggest decline out of them all. For example, between February and July, it lost roughly 70 percent of its total website traffic. Among the biggest losers over those same months was also Upbit, which saw a total drop of 61.8 percent in the number of visits. It was followed narrowly by Bithumb with a decline of 58.4 percent in its traffic also.
There are some bright, shining stars among the crypto trading platforms, however. The China-based Lbank, for example, experienced a significant rate of growth, with the number of visits increasing by over 355 percent in the same period of time. Being a company registered in Hong Kong, CoinSuper also registered an even more remarkable rate of growth, increasing by 700 percent.
Coinsuper is a relatively new trading venue that was launched in 2017. In recent reports, some concerns were raised in the industry regarding the nature of this volume growth that's reported by various crypto exchanges. While it does offer transaction mining, which is a sort of reward system for trading. It's important to not confuse this aspect with fake volumes.
The phenomenon of inflated volumes has been an endemic problem for the cryptocurrency industry as a whole. According to the research by Finance Magnates, it covers this topic in July with an article on the recent requirements rolled out by CoinMarketCap for listings. In the instance of CoinSuper, this study showed that there was legitimate growth in its volumes.
Crypto Exchanges Visitors and Market Benchmark
When the popularity of top 5 leading exchanges is compared to Finance Magnates Performance Benchmark one can observe a correlation between both. While the prices on the primary crypto exchanges continue to decline, so too do the number of visits to the main, better-known venues. This confirms that there is a diminishing interest in the cryptocurrency market seen from the mass volume of users.
One of the systems used by Finance Magnates and its Intelligence Department is the Cryptocurrencies Performance Benchmark and aims to use this to measure the general condition of the main cryptocurrencies. It's composed of four of the biggest cryptocurrencies by their individual market capitalization and tracks their underlying price change. Currently, these are Bitcoin, Ethereum, Ripple (XRP) and Bitcoin Cash. The initial value of the benchmark on September 30, 2017, was 5,000 points.”
The Finance Magnates Intelligence Department has also launched a new project, which creates a set of analyses covering various aspects of the cryptocurrency trading industry. These provide analysts with unique data points gathered by our analysts, these will serve as a valuable knowledge base for their future decision making.