Crypto Exchanges Witness Second-Largest Traffic Volume in 3 Years

Data from SimilarWeb reveals that the number of visitors to cryptocurrency exchange websites grew to 344 million people in Jan. 2021.

Despite an average December of almost 200 million, the number of people flocking to crypto exchanges has spiked 75% per month.  

It’s the second time in three years that the crypto community has faced such a significant increase in user activity. The numbers are starting to catch up to those recorded in January 2018. Back then, more than 530 million embraced crypto trading platforms.

Binance Still Riding High

The three leading exchanges in terms of visitors include Binance, Coinbase and Kraken. Changpeng Zhao’s Binance accounts for 28.8% of visits, experiencing relatively stable user activity in recent months.  

Meanwhile, the San Francisco-based Coinbase exchange is intensively expanding its client base. Its total share of the crypto market is about 25.11%. This is a notable 20% growth compared to the 20.9% recorded in October 2020.

There continues to be strong institutional interest in Ethereum (ETH). Coinbase notes a substantial rise in ETH addresses with increasing outflows seen since Jan 1. 

Another U.S. cryptocurrency exchange Kraken took third place with a share of 6.19%. Recently, the company announced that over 250,000 users have been staking ETH on its platform since the launch of Ethereum 2.0 in early December.

A Big Month for Crypto

Given the latest market movements, the marked growth in cryptocurrency trading platforms perhaps comes as no surprise. Bitcoin (BTC) broke its all-time high on Monday, Feb. 8. This wild rally is causing retail investors to FOMO (Fear of Missing Out) in order to:

“capture some of the wild gains in the cryptocurrency market.” 

After months of consolidation, the leading crypto is finally outperforming alts again. At press time, bitcoin was trading over $43,000, after Tesla Inc. bought $1.5 billion in BTC.

Yet another reason for the heightened interest in crypto exchanges is the Reddit-inspired market mania. This mostly affected Dogecoin (DOGE) and XRP buying activity. In light of the latest GameStop pump, both assets climbed in the market cap rankings, according to CoinMarketCap.

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