Cryptocurrency trading platforms are based on two bases: trading volume and visitor traffic.

For visitors to the platform, over time, they will certainly turn into users, thus contributing to an increase in the trading volume, and the greater the trading volume, the more the platform will attract new visitors and users, meaning that the process is interconnected.

Some cryptocurrency trading platforms know rapid and strong growth, but there is a difference between that and the fake growth that some platforms exploit to attract new users.

According to report Quarterly released by CoinGecko for the second quarter of 2020, there is a disproportionate increase in the volume of cryptocurrency exchanges and the number of visitors.

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The report questioned whether the increase in visitor traffic corresponds to the registration of more traders.

According to the report, 20 cryptocurrency exchanges have visitors who are not “members” meaning they are not registered as traders.

On average, the cryptocurrency trading industry has seen an 11.4% increase in online traffic, and the biggest beneficiary of this increase is Binance and OKEx.

While most platforms other than these ones saw a decrease in average traffic between the first quarter and the second quarter.

Binance saw an increase of 9% which seems insignificant in relation to the 239.3% increase in OKEx visitors.

Despite the big difference, Binance still gets more than 70 million visits compared to OKEx’s 20 million.

Coinbase came in third with over 10 million visits, followed by Bithumb, Kraken, and Upbit.

Huobi was the biggest loser in the top 20 trading platform list, with a quarterly decline of 31.7%.

Despite the difference in performance and the huge gap between the first exchanges and the rest of the others in terms of the number of visitors, the report indicated that for some exchanges, the largest visits came through advertisements.

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The same report referred to above indicates that traffic growth for some trading platforms may be inorganic and efficient as the largest referrals came from advertising sites.

Referring to the OKEx platform’s gains, CoinGecko’s report stated that the platform’s growth may appear inorganic as its top 5 referral sites were ad sites such as “adbtc.top and cointiply.com.”

Binance also has similar data where the best referrals were coming from ad sites.

It seems alarming as most of the platform tracking and analytics sites include a tool that measures traffic data as a necessary condition for trading platform rankings.

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Coinmarketcap, which was acquired by Binance in April 2020, has recently changed its ratings for trading platforms.

In the ranking of instant cryptocurrency exchanges, Binance ranks first due to the traffic factor and other metrics considered include average liquidity and trading volume in 24 hours.

In a recent post on the Coinmarketcap blog, I told how visitor traffic points are calculated as they consider:

Page views, number of unique visitors, bounce rate, time on site, relative ranking, and keyword searches.

Read also:

Big Drop in Bitcoin Trading Volume on Cryptocurrency Exchanges… Why?

Four Key Points About Global Bitcoin Trading Volume