Spikes in Website Traffic to Crypto Exchanges Suggest Retail Investors are Returning
K33Research Senior Analyst Vetle Lunde has observed a notable increase in website traffic for cryptocurrency exchanges, indicating that retail investors are gradually returning to the market. The data reveals a 45% surge in 90-day website traffic from August to October. During this period, the total volume of traffic on crypto exchanges reached 550 million, which further rose by 45% to 801 million between December 2023 and February 2024.
Although these figures fall short of the peak recorded from June to August 2022 at 910 million, they signify positive growth in retail interest. Notably, this surge coincides with the recovery of the cryptocurrency market that began in late 2023 with the rise in Bitcoin (BTC) prices and the anticipation surrounding the approval of spot Bitcoin ETFs.
Growth in CoinMarketCap and CoinGecko
Alongside the increased website traffic for crypto exchanges, CoinMarketCap and CoinGecko have also experienced significant growth. From August to October 2023, these platforms witnessed a total traffic volume of 311 million, which subsequently rose by 66% to reach 519 million between December 2023 and February 2024.
“Still, both are well behind the summer of 2022.”
Vetle Lunde, K33Research Senior Analyst
Rise in Bitcoin Price and Demand
On March 5th, Bitcoin (BTC) surpassed its all-time high, reaching a rate exceeding $69,000. Over the past month alone, Bitcoin has seen a price increase of approximately 60%, pushing its market capitalization past $1.34 trillion, a record-breaking figure. There are two primary drivers behind this surge in demand and price:
- The significant influx of capital into the U.S. Bitcoin spot ETFs launched in January.
- The upcoming halving event expected to take place in April.
Hot Take: Retail Investors Return to Crypto Market Amidst Recovery
Recent data indicating a surge in website traffic to crypto exchanges and platforms like CoinMarketCap and CoinGecko reflects the gradual return of retail investors to the cryptocurrency market. This growth, although not surpassing previous peak levels, aligns with the recovery of the market that began in late 2023. The rise in Bitcoin prices and anticipation surrounding spot Bitcoin ETF approvals have played a significant role in driving this renewed interest from retail investors.
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