What's causing the decline in Web Traffic to Crypto Exchanges?

[BitHunter]

User engagement plays a pivotal role in the ever-evolving world of cryptocurrencies. With data from "SImilarweb", ICO Analytics was able to shed light on the shifting preferences of crypto enthusiasts across various platforms in April 2024.

After going through it, here are the key takeaways in my opinion. Binance, despite being the leader with 75 million visits, faced a -26% decline from March while Coinbase and BYBIT both experienced a significant drop of -31% and -21% respectively.

The biggest gain was experienced by Bitget, with an impressive +11% growth increase in web traffic in contrast to the negative trend, while the steepest decliner was KUCOIN with -39%, highlighting the volatile nature of user trust.

As exchanges adapt and enhance security, attracting and retaining users remains a challenge.

What is causing this significant decline though?

[Smcchamp]

User engagement plays a pivotal role in the ever-evolving world of cryptocurrencies. With data from "SImilarweb", ICO Analytics was able to shed light on the shifting preferences of crypto enthusiasts across various platforms in April 2024.

After going through it, here are the key takeaways in my opinion. Binance, despite being the leader with 75 million visits, faced a -26% decline from March while Coinbase and BYBIT both experienced a significant drop of -31% and -21% respectively.

The biggest gain was experienced by Bitget, with an impressive +11% growth increase in web traffic in contrast to the negative trend, while the steepest decliner was KUCOIN with -39%, highlighting the volatile nature of user trust.

As exchanges adapt and enhance security, attracting and retaining users remains a challenge.

What is causing this significant decline though?

Lots of factors causes decline probably users loss of confidence in the platform, lack of quality service, non compliance with regulations & transparency or the general crypto market trend. All the same the cex that gained an increase in web traffic needs to be commended. My idea is they're doing something right..

[Agbe]

Op as a Nigerian you supposed know weti dey happen in di country why people dey leave those exchanges, people no dey keep coins there again because of the drift between Nigeria government and them . As the previous commenter said there many factors. People are not using it like before again and also people withdraw their services from there. The attacks from government also make it to decline.

[SmartGold01]

@Agbe op seems not to know that Nigeria has a major key role to play in cryptocurrency market today, with this market pressure from Government how did he think that people would still trading on those exchange that doesn't support p2p anymore. Sincerely Nigeria if I am not mistaken are the 3 to 4 country that is mostly influencing the market today and most of those exchange their target is Nigerians, for example like Binance, its number one Nigerian rated exchange.

[Igebotz]

@Agbe op seems not to know that Nigeria has a major key role to play in cryptocurrency market today, with this market pressure from Government how did he think that people would still trading on those exchange that doesn't support p2p anymore. Sincerely Nigeria if I am not mistaken are the 3 to 4 country that is mostly influencing the market today and most of those exchange their target is Nigerians, for example like Binance, its number one Nigerian rated exchange.

If it were simply a few exchanges like Binance, OKX, and some of the big ones that offer p2p marketplaces for Nigerians, I would have agreed more with you, but we're talking about a massive decline in traffic on all major crypto exchanges. I believe the situation with Binance is not a good one because they are the top cryptocurrency exchange and if they do not move in the right path, other small exchanges will suffer as well.

 Second, we're approaching another bull run, and customers are moving their coins from exchanges to self-custody wallets.

[SmartGold01]

@Agbe op seems not to know that Nigeria has a major key role to play in cryptocurrency market today, with this market pressure from Government how did he think that people would still trading on those exchange that doesn't support p2p anymore. Sincerely Nigeria if I am not mistaken are the 3 to 4 country that is mostly influencing the market today and most of those exchange their target is Nigerians, for example like Binance, its number one Nigerian rated exchange.

If it were simply a few exchanges like Binance, OKX, and some of the big ones that offer p2p marketplaces for Nigerians, I would have agreed more with you, but we're talking about a massive decline in traffic on all major crypto exchanges. I believe the situation with Binance is not a good one because they are the top cryptocurrency exchange and if they do not move in the right path, other small exchanges will suffer as well.

 Second, we're approaching another bull run, and customers are moving their coins from exchanges to self-custody wallets.

you think this another factor that could propelled this massive decline?
Well, I can't say for sure the cause of it but I want understand so far is that there is a debate in US concerning coinbass which could be another factor. Although I don't know how legitimate this information could be but I red it the other forum, in total I can say that the market is not just favorable for now because there are lots of issues on ground.

[MCcabe Rory]

Op as a Nigerian you supposed know weti dey happen in di country why people dey leave those exchanges, people no dey keep coins there again because of the drift between Nigeria government and them . As the previous commenter said there many factors. People are not using it like before again and also people withdraw their services from there. The attacks from government also make it to decline.

When Binance P2P closed, my friends and I sought alternatives on Bitget, and we've been comfortable there ever since, due to the quality of their service. However, I must say that since they're among the CEXs with positive growth increase, they deserve commendation for really stepping up. Another factor I think is responsible is the market uncertainty we've been having, as there hasn't been any major market movement yet, in my opinion.

[Haidar]

The decline in web traffic to crypto exchanges is a concerning trend, and the data from Similarweb highlights the shifting preferences of crypto enthusiasts. In my opinion, the decline can be attributed to several factors, including increased competition, security concerns, and a lack of innovative offerings. Another factor could be increased regulatory scrutiny around crypto exchanges, making some users wary.
Binance, Coinbase, and BYBIT's significant decline in web traffic (-26%, -31%, and -21% respectively) suggests that users are looking for alternative platforms that can meet their evolving needs. On the other hand, Bitget's impressive +11% growth increase in web traffic is a notable exception, indicating that the platform is doing something right. The steep decline of KUCOIN (-39%) highlights the volatile nature of user trust and the importance of adapting and enhancing security measures to attract and retain users. Overall, crypto exchanges need to innovate and prioritize user experience to reverse this decline and stay competitive in the market

[Cryptsafe]

OP I could decipher that most of the exchanges are currently in imbroglio with government of their various nations and that alone could trigger the decline in traffic they are currently experiencing. Nobody would want to jeopardise with their assets when it happens that the exchange holding it on their behalf is having series of arguments with the government of their nation. It would be wise they act accordingly to safeguard their assets and funds hence they
withdraw and when they withdraw their funds, the decline in traffic because they have nothing to do with the exchange anymore.

Lastly, just as igebotz have said pertaining to the bull run at hand,  I believe many holders have been able to move their assets out of the exchange into self custody so as to be able to monitor or keep watch of their assets because at some point, some exchange might come up with news of unfortunate incidence rocking them so before such should happen, they should be on the safe side.

[Rruchi man]

What is causing this significant decline though?

If this data only signified what was going on in Nigeria, then I would have said the recent government attack on cryptocurrency is playing a major role in this decline, but since it seems like a global thing, I can say that since Binance which has been a major exchange in many countries, has been facing many attacks from many government slamming them with money laundering charges, and that has sent a signal of distrust to many people who are now beginning to become more conscious again that keeping investment in exchanges is risky.