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

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

According to a CryptoCompare Research report published today, exchanges that the analysts ranked “top tier” gained 13% of the market share from October to January. The market share of these 84 exchanges was around 74% with assets of more than USD 1 trillion.

However, CryptoCompare said that percentage likely rose to 85% in January. Given that the total market capitalization of all cryptocurrencies at the time of publication is $ 1.47 trillion, the market share of these exchanges can now exceed $ 1.2 trillion.

Source: CryptoCompare

The report attributed the surge in market share to retailers and professional crypto traders who turned to seemingly lower risk exchanges as the price of Bitcoin (BTC) rose above $ 20,000 in late December and above $ 30,000 in January.

One of the most important reasons for the increased market share could, however, be that CryptoCompare rated 16 exchanges more than “Top Tier” than in October – a designation that is intended to measure the risk of an exchange rather than its superiority. The company found that many exchanges are now meeting the “tightened” KYC and AML requirements. Many also provide more transparency and improve their general operational status.

According to the results of CryptoCompare, 44% of the 160 analyzed exchanges offered the possibility of “querying full historical trading data via a public API endpoint,” compared with 37% in July. In addition, the percentage of exchanges rated “bad or inadequate” by CipherTrace had dropped from 44% in July to 33% in January.

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

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