The Current State of Cryptocurrency Exchanges
In a recent report by CryptoCompare, the startling reality of global cryptocurrency trading was unveiled: D-E rated exchanges, generally deemed low-quality, are still flexing their muscles, raking in a whopping 64% of the total trading volume. This translates to an eye-watering $316 billion for July alone! Meanwhile, the prestigious AA-rated exchanges, which most investors would trust with their grandmother’s wedding ring, barely scraped together a meager 5%, or $31 billion.
Rosy Spots in a Gloomy Landscape
Despite the dark cloud hanging over low-rated platforms, hope glimmers for the upper tiers. As per the CryptoCompare report, there’s a silver lining—trading volumes on the highest-rated AA and A exchanges saw climbs of 29% and 10% respectively. In stark contrast, the notorious E-rated exchanges floundered with a 20% decrease, totalling $142 billion.
The Heavyweights of Trade Volume
Analysing trade figures exposes an interesting paradox: the average trade sizes on low-rated exchanges dwarf those of their high-grade counterparts. For example, exchanges like LBank, Coinsbit, and CoinBene logged average trades of 3.7, 1.6, and 1.1 BTC, respectively. Just to illustrate, LBank’s average trade was around 15 times more than that of Coinbase, which, on its good days, boasts over 100,000 trades daily.
Reputable Platforms in the Lead
While low-tier exchanges are raking in large average trade volumes, the real traffic happens on reputable platforms. Liquid, Binance, OKEx, and BitFlyer have proven they’re not just glitter; they’ve topped the charts for daily trade counts, with Liquid surpassing 400,000 trades a day.
Spotting the Fakes: Industry Integrity in Question
As the adage goes, “not everything that glitters is gold.” The crypto market has become increasingly aware of fake trading volumes and the tactics behind them, like wash trading and spoofing. A chilly report earlier this year from Bitwise Asset Management claimed that a whopping 95% of Bitcoin’s trading volume on platforms like CoinMarketCap was manipulated. In a bid for transparency, CMC has issued strict demands for exchanges to report accurate data; else, risk delisting. In simpler terms, the stakes are high, and honesty might just be the best policy.
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