The Bulkย of Worldwide Cryptocurrency Trading is Concentrated on Eight Exchanges, According to Kaiko
An analysis conducted by Kaiko has revealed that just eight digitalย currency exchanges handle 90% of the worldwide cryptocurrency volumeย ofย trading, with as much as 92% of the market depth held by these exchanges. Binance, led by Changpeng Zhao, has accounted for over 30% of the digitalย currency market depth worldwide since the start of 2023, and it is inย chargeย of more than 64% of worldwide cryptocurrency trading volumes. Nonetheless, market depth for Binance has declined by almost 12% since 2021. Other exchanges that dominate the cryptocurrency market include Coinbase, Kraken, OKX, KuCoin, Bybit, Binance. Unitedย States, and Bitfinex. The concentration of liquidity in a few exchanges is attributed by Clara Medalie, Kaikoโs director of research, to natural market forces that have favored the average cryptocurrency trader.
Hot Take
The concentration of worldwide cryptocurrency trading on just eight exchanges raises concerns about liquidity shortages and probable points of failure in the market. Althoughย while it may benefit average traders by reducing volatility, the high concentration could disrupt the price discovery process. Kaikoโs report serves as a reminder of the challenges faced by the cryptocurrency market, especially after experiencing a wholeย lotย of decline in volumeย ofย trading numbers in August 2023.
Noah Rypton stands as an enigmatic fusion of crypto analyst, relentless researcher, and editorial virtuoso, illuminating the uncharted corridors of cryptocurrency. His odyssey through the crypto realms reveals intricate tapestries of digital assets, resonating harmoniously with seekers of all stripes. Noah’s ability to unfurl the labyrinthine nuances of crypto intricacies is elegantly interwoven with his editorial finesse, transmuting complexity into an engaging symphony of comprehension.
