- Cryptocurrency exchange websites experienced a sudden traffic influx in January.
- Binance, Coinbase, and Kraken accounted for 60% of traffic.
- The top three exchanges crushed under the pressure of increased users.
The Block and SimilarWeb reported that data collected in January saw record-breaking visitors on crypto exchanges. January saw over 300 million website visitors in total. This is up more than 100 million from December 2020.
The recorded figure is the highest since the ATH of 531 million from Jan 2018. This is due to the social and economic state of 2020 placing crypto as an enticing asset to a wide class of investors.
The Block also reported that Binance drew about 28.8% of the visitors. The exchange was ill-prepared to handle the sudden influx. On Jan 29, Binance stated that it would suspend withdrawals to address the influx of new users.
Recently, Binance CEO Changpeng Zhao tweeted a reply to a meme posted on Reddit. The meme criticized the long approval waiting period to open a Binance account.
In other words, the exchange is still struggling to adjust to its newfound fame.
Coinbase and Kraken accounted for a little over 31% of traffic, with 25.11% and 6.19% each. Thus the last 40% of traffic was across a few sites like Indodax, Upbit, and others.
Coinbase also faced an outage that left many users stranded on January 29. In addition, the exchange recently issued an incident report regarding the issue. The cause was that the CPU load on the Redis cluster was stressed, causing several API endpoints to fail.
Kraken also had a similar loss of service on Jan 29.
Bitcoin recorded the highest number of unique active addresses in January. The interest in Bitcoin and altcoins is up as Bitcoin recently surpassed $40,000 and other cryptos continue pumping. Hopefully, this will make February a record-breaking month as well.