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

Out of the 160 cryptocurrency exchanges analyzed in a current report, half management roughly 85% of the entire market share.

In line with a CryptoCompare Analysis report printed at present, exchanges that the analytics agency rated as “prime tier” gained 13% of the market share from October 2020 to January. This put the market share of those 84 exchanges at roughly 74%, with greater than $1 trillion in belongings.

Nevertheless, CryptoCompare stated this proportion seemingly rose to 85% for January. On condition that the entire market capitalization of all cryptocurrencies is $1.47 trillion on the time of publication, the market share of those exchanges could now be greater than $1.2 trillion.

Supply: CryptoCompare

The report attributed the rise in market share to retail {and professional} crypto merchants turning to exchanges with seemingly decrease danger as the worth of Bitcoin (BTCsurged previous $20,000 in late December 2020 and $30,000 in January. 

Nevertheless, one of many extra important causes for the elevated market share could also be CryptoCompare score 16 extra exchanges as “prime tier” than in October 2020 — a designation meant to measure an alternate’s stage of danger fairly than its superiority. The agency famous that many exchanges at the moment are complying with “toughened” Know Your Buyer and Anti-Cash Laundring necessities. Many are additionally offering elevated transparency and enhancing their total operational standing. 

In line with CryptoCompare’s outcomes, 44% of the 160 exchanges analyzed offere the power to “question full historic commerce knowledge through a public API endpoint,” in contrast with 37% in July 2020. As well as, the share of exchanges rated as having “poor or insufficient” KYC techniques in keeping with CipherTrace fell from 44% in July 2020 to 33% in January.

The report particularly mentions Coinbase, Gemini, Bitstamp, Kraken, itBit and Luno because the “lowest danger exchanges. Others similar to Binance, FTX, OKCoin, Huobi World and Bitfinex are listed within the subsequent “decrease tier” class.