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

02/16/2021

The report states that KYC and AML requirements for exchanges have considerably improved during the last 4 months.

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

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

Nonetheless, CryptoCompare stated this share seemingly rose to 85% for January. On condition that the full market capitalization of all cryptocurrencies is $1.47 trillion on the time of publication, the market share of those exchanges might 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 threat as the value of Bitcoin (BTC) surged previous $20,000 in late December and $30,000 in January. 

Nonetheless, one of many extra important causes for the elevated market share could also be CryptoCompare ranking 16 extra exchanges as “prime tier” than in October — a designation meant to measure an change’s degree of threat moderately than their superiority. The agency famous that many exchanges at the moment are complying with “toughened” KYC and AML necessities. Many are additionally offering elevated transparency, and enhancing their total operational standing. 

In keeping with CryptoCompare’s outcomes, the agency stated that 44% of the 160 exchanges analyzed provided the power to “question full historic commerce knowledge by way of a public API endpoint,” in comparison with 37% in July. As well as, the share of exchanges rated as having “poor or insufficient” KYC programs in accordance with CipherTrace had fallen from 44% in July to 33% in January.

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