The world’s top crypto exchanges are accounting for an increasingly larger share of the industry’s trading volume, new data shows.
Cryptocurrency insight firm Kaiko says in a new report that the world’s eight largest exchanges account for over 91% of the market depth and over 89% of the total trading volume.
Just like a few years ago, Binance is still leading the pack.
Kaiko says:
“Liquidity is concentrated and will become more concentrated over time. In 2023, the top exchange Binance accounted for 30.7% of global market depth and 64.3% of global trading volume. Top 8 The largest platform occupies 91.7% of the depth and 89.5% of the volume.
Since 2021, Binance’s spot trading volume market share has increased from 38.3% to 64.3%. It should be noted that a large part of this increase is related to Binance’s zero-fee trading promotion. “
Kaiko said liquidity is concentrated in just a handful of exchanges, and while there are hundreds of trading platforms, most cater to only niche segments of market activity.
“While it may be optimal from a market perspective to concentrate liquidity on a few exchanges, the crypto industry generally values decentralization. Centralized Exchange (CEX) Liquidity There is very little decentralization in terms of
Anti-crypto regulatory challenges in the U.S. have reduced altcoin liquidity, making it highly concentrated on three major exchanges: Coinbase, Kraken, and Bitstamp, Kaiko said.
“Kraken’s altcoin liquidity has been particularly strong, making it a strong competitor to Coinbase. Since August 2022, Kraken has not seen a decline in the market depth of the top 30 altcoins, but the coin The base lost up to $5 million in liquidity.”
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Featured image: Shutterstock/SvetaZi/Natalia Siiatovskaia
