As a young industry, the cryptocurrency space has been like a revolving door, seeing numerous companies, projects and assets come and go with the wind. Crypto exchanges, in particular, have seen their fair share of changing tides. Outfits such as BitMEX and Binance have grown since 2017 while newcomers such as Bybit have more recently entered the spotlight.
BitMEX, Bitfinex, Coinbase, Binance and Bybit have each seen their share of activity on social media, each with varying amounts of trading volume, although recent data from Amazon’s analytics site Alexa shows where these five exchanges really stand in terms of traffic and engagement. High trading volume does not necessarily equate to a high website traffic and engagement ranking compared to all online websites.
Binance has grown immensely since its founding in 2017, adding numerous assets, as well as futures and margin trading features in 2019, around the same time the operation geofenced United States-based customers to the regional Binance America platform.
Banning the U.S., however, obviously has not caused Binance’s website traffic and engagement to falter. The exchange has amassed a notable $1 billion in profit since its inception in 2017, with a record Q3 in 2019, as Cointelegraph reported in October.
Founded in 2012, the app and online cryptocurrency marketplace Coinbase made numerous headlines during the bull run of 2017. The entity ranks second among the list of mentioned exchanges in terms of overall traffic and engagement, sitting at 2,335 on Amazon’s Alexa data page.
Coinbase is the only exchange on the mentioned list that exclusively hosts spot cryptocurrency trading, meaning traders are buying and selling actual physical Bitcoin on Coinbase and not derivative products or contracts, which directly affects Bitcoin’s price.
When compared to other cryptocurrency exchanges, this ranking is fairly high, especially when considering the amount of volume running through margin trading exchanges. One might conclude this as positive for BTC and other crypto assets available on Coinbase as such activity might mean participation from folks other than traders.
Bitfinex has graced many headlines since its inception in 2012. Authorities have looked into the outfit numerous times, probing to see whether or not the company is running a legitimate and legal operation. Bitfinex has also seen complications due to its alleged relationship with stablecoin Tether.
Bybit comes in at 12,035 when compared to all websites on Amazon’s Alexa data. It surprisingly ranks higher than BitMEX by web traffic, an exchange so popular that it is known for its “overload” — a condition in which the exchange freezes and locks out users during times of high traffic.
Bybit is not listed on CoinMarketCap, so it is difficult to gauge its comparative volume, although one reason it may currently rank higher than BitMEX in terms of traffic may be due to the exchange’s upcoming trading competition.
Bybit is hosting a massive trading competition that started on Nov. 18, with prizes totaling up to 100 BTC. Many social media personalities in the crypto space have promoted the competition, compiling teams to enter the event.
Exchange volume does not equal web traffic
Based on the above data, exchanges that posted the highest volume were not necessarily the exchanges with the most web traffic and engagement. This notion may indicate that large traders trading big positions gravitate toward exchanges with higher liquidity. It contrast, lower volume exchanges may pick up more overall traffic as a result of various promotional offers, gimmicks and other tactics getting interested less sizable folks in the door, but may not see a resulting sizeable increase in volume.
Additionally, the traffic and engagement numbers from spot-based exchanges such as Coinbase and Binance may indicate interest from the mainstream public. (Binance hosts derivative trading, but has largely been known as a spot operation for most of its existence.) These exchanges might be hosting more traffic while yielding less volume as many nonprofessional traders interested in investing a few dollars worth of cryptocurrency engage with these platforms.