Crypto Exchange Traffic Surges in October
Aggregate monthly traffic to 20 of the largest crypto exchanges jumped 8% in October – one of the largest month-over-month surges in recent times – as excitement gathers pace following the pro-crypto election results in the United States. In fact, a pro-crypto President and crypto-friendly lawmakers elected to office have fired up the cryptocurrency sector all over again amongst both retail and institutional investors alike.
Top Exchanges Leading the Surge
Per data from ICO Analytics, several crypto exchanges showed great month-over-month traffic increases: the leader was Pump Fun with 100%, followed by BullX with 78%, while Uniswap came in at 42% growth. This attracted a sizeable number of investors who wanted to capitalize on the good vibe surrounding digital assets. Major exchanges like Binance, WhiteBit, and Coinbase were the most visited, having recorded 54 million, 33 million, and 30 million visits, respectively. This increase in traffic is a signal of wider interest in trading and investing in crypto assets in anticipation of favorable regulatory changes in the market.
October’s “Uptober” Rally in Crypto Markets
October’s traffic surge coincided with the yearly “uptober” narrative, a term describing the pattern for digital-asset markets to post gains during the month of October after a quiet summer period. The growing interest was in line with a rally in crypto prices as investors hoped for policy changes that would further boost the industry. Meanwhile, Bitcoin gained momentum and approached new highs over the U.S. election month, amid increased institutional and retail participation.
Indicators Suggest Sustainable Growth Indeed
Several indications support the idea that the rally could be sustainable. This includes: open interest on Bitcoin futures contracts jumped $1.1 billion on the Chicago Mercantile Exchange, indicating increased institutional investment, while lower expected interest rates, and strong inflows into Bitcoin ETFs become other supportive indicators. On November 6, BlackRock’s IBIT Bitcoin ETF reached an all-time high in trading volume, at $4.1 billion, following the pro-crypto election results. This uptick in the volume of the ETF is indicative of a general trend in investor confidence in digital assets.
Lastly, inflows into exchanges of stablecoins, a popular proxy for investor interest, hit $9.3 billion on November 7. These flows of stablecoins have served as an indication that traders are loading up to trade on further price appreciation.
Ethereum Joins the Market Rally
The other major cryptocurrency, Ethereum, has also attracted fresh interest. After months of drag, Ether finally broke above $3,000 and inflows into Ethereum ETFs turned positive. Perhaps this change in investor sentiment will be the key to extend the broader market rally because investors are diversifying across different types of digital assets.
As the political atmosphere continues to remain in its favor, and most indications are towards sustained growth in the crypto market, looking ahead for the next couple of months looks promising.
