In February, popular crypto exchanges Binance and Coinbase experienced a significant decline in traffic, with both platforms losing nearly 30% of their user base. This decline may be attributed to the bearish factors in the crypto market, which have led to a contraction overall. While both exchanges had positive developments during the month, they still underperformed compared to their competitors. The decline in traffic for centralized exchanges (CEXs) is concerning since they are vital indicators of the health of the crypto economy. This decline in traffic also reflects a decline in trading volumes for spot and derivatives trading. Other major CEXs also saw a decline in traffic, but Binance and Coinbase were clear outliers. The weakening market appeal for retail investors and weak investor sentiment may be contributing to this decline. Despite positive news such as the SEC dropping a major lawsuit against Coinbase, the exchanges have not been able to reverse the downward trend in traffic.



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