Market share of top crypto exchanges passes $1T: CryptoCompare report


Of the 160 cryptocurrency exchanges analyzed in a recent report, the half controls about 85% of the total market share.

According to a CryptoCompare Research report published today, the exchanges ranked by the analytics firm as “tier 1” gained 13% of market share from October to January. This put the market share of these 84 exchanges at around 74% with assets in excess of $ 1 trillion.

However, CryptoCompare said that percentage likely increased to 85% for the month of January. Given that the total market capitalization of all cryptocurrencies is $ 1.47 trillion at the time of publication, the market share of these exchanges may now be over $ 1.2 trillion.

Source: CryptoCompare

The report attributed the increase in market share to retailers and professional traders switching to seemingly lower-risk exchanges as Bitcoin (BTC) rose to over $ 20,000 in late December and $ 30,000 in January.

However, one of the more important reasons for the increase in market share may be CryptoCompare’s rating of 16 other exchanges as “top notch” compared to October – a rating that aims to measure the level of risk in the exchange rather than outperform it. The company indicated that many exchanges are now complying with the strict “Know Your Customer” and “Anti-Money Laundering” requirements. It also provides many of them with more transparency and improves their overall operating position.

According to CryptoCompare’s results, the company said 44% of the 160 exchanges analyzed provide the ability to “query complete historical trade data via a public API endpoint,” compared to 37% in July. In addition, the percentage of exchanges rated as “weak or inappropriate” of Know Your Customer systems according to CipherTrace decreased from 44% in July to 33% in January.

The report specifically mentions Coinbase, Gemini, Bitstamp, Kraken, itBit, and Luno as “the least risky exchanges. Others such as Binance, FTX, OKCoin, Huobi Global and Bitfinex are listed in the next“ lower level ”category.