Cumulative monthly traffic on the top 20 cryptocurrency exchanges rose 8% in October, reflecting increased investor interest and growing retail trader participation ahead of the US election in 2024.
According to ICO Analytics, memcoin platform Pump Fun recorded the highest monthly increase in percentage terms at 100% in October. Crypto #exchange BullX followed with a 78% increase in web traffic from September to October, while decentralized exchange Uniswap ranked third with a 42% increase.
Binance, WhiteBit and Coinbase led in monthly traffic by total visits in October with 54 million, 33 million and 30 million visits respectively.
The increase in traffic led to a rally in cryptocurrency markets, consistent with the “uptober” narrative, or the expectation that digital asset markets typically rise in October after sideways trading trends during the summer months.
Evidence of a sustained rally
While cryptocurrency exchanges experienced an increase in web traffic ahead of the 2024 U.S. election, the results of the Nov. 6 race triggered a rally that lifted the price of bitcoin ($BTC
) to new all-time highs.
Several indicators suggest that the current rally may be sustainable and is just beginning. Factors include an additional $1.1 billion of open interest in bitcoin futures contracts on the Chicago Mercantile Exchange, anticipation of lower interest rates, and strong inflows into bitcoin ETFs.
On Nov. 6, BlackRock's Bitcoin IBIT ETF experienced its highest volume ever - trading at $4.1 billion - following the victory of pro-cryptocurrency Republican candidate former President Donald Trump.
Recent inflows to the exchange of stablecoins, which investors use as an indicator to gauge market interest, are another signal that traders expect the price to rise further. On Nov. 7, inflows to the #stablecoin Exchange reached $9.3 billion as the price of bitcoin continued to rise.
The recent rise has also led to a shift in investor sentiment toward Ethereum, as the price of Ethereum ($ETH
) surpassed the $3,000 level and inflows into the Ethereum ETF turned positive after months of disappointing price movement.
