Reliable crypto exchanges account for only 5% of the total trading volume
How to Use Volume to Trade Cryptocurrencies: Trading Volume Explained – CoinCrew TV Ep. 4
According to research by CryptoCompare, untrustworthy cryptocurrency exchanges before so far control the lion’s share of the market.
In the new analytical report the firm said that as of July of this year, trading platforms with low ratings (D and E) account for 64% of total trading volume, which in absolute terms is $ 316 billion. Wherein top-tier platforms, AA, handle only about 5% of cryptocurrency transactions.
However, CryptoCompare notes positive dynamics in July, driven by an increase in the performance of exchanges with good ratings (AA and A) by 28.7% and 9.9%, respectively., as well as a 19.4% decrease in the share of E-class sites compared to June. The largest increase (56.8%) was observed in the middle group with a C rating.
Unreliable exchanges, level C-F, report the highest average transaction volumes in the market. For example, LBank, Coinsbit and CoinBene platforms have reported rates of 3.7, 1.6 and 1.1 BTC, respectively. Compared to American exchange Coinbase with AA rating, the size of the reported average LBank, D level, is about 15 times larger.
Nevertheless, in terms of the average number of transactions per day, reliable platforms (AA-B) are leading: Liquid, Binance, OKEx and BitFlyer. From 200 to 400 thousand speculative transactions are performed on them daily.
Skewed performance in the crypto industry is a common problem that vendors are already starting to grapple with. data and analytical companies. Although, according to a study by the investment company Bitwise Asset Management, artificially inflating trading volumes by crypto exchanges has no effect on bitcoin rate.
text: Ivan Malichenko, photo: kursiv, chart: CryptoCompare