Coinbase, Gemini To Binance – Crypto Oligopoly Now Threatening Top Exchanges To Take 96% Market Share

Top-tier crypto exchanges hit all-time highs in market share this year as traders sought lower-risk locations amid broader market volatility, data collected by tracker CryptoCompare shows.

Top-tier crypto exchanges hit all-time highs in market share this year as traders sought lower-risk locations amid broader market volatility, data collected by tracker CryptoCompare shows.

According to the tracker, crypto exchanges considered at the highest level increased their market share in February from 89% in August to 96% in February. These 78 exchanges, led by Coinbase Global Inc., Gemini Trust Co., Bitstamp Ltd. and Binance, have captured market share from peers struggling to maintain security and stability.

The top-ranked exchanges traded a total of $1.5 trillion in February. So-called lower exchanges traded about $62 billion that month, CryptoCompare said in a report published Monday.

The researcher assessed 150 spot exchanges based on everything from regulatory compliance to security to whether they verify the identities of their customers and were compromised in the past.

Also Read  How Do I Delete My Google Play Payment Account? (2022) - Best Methods

More than 50 exchanges have been closed since June 2019 as China cracked down on its crypto industry and traders fled to better quality venues, the report said. A wave of takeovers by top crypto exchanges has also led to further consolidation. Gemini, the cryptocurrency platform of the Winklevoss brothers, acquired trading technology provider Omniex earlier this year to better serve institutional investors. Also FTX Trading Ltd. announced the acquisition of fintech Liquid Group to increase its presence in Japan.

“As the industry matures, we expect there will be an oligopoly of exchanges dominating trading volumes as their traction accelerates and smaller players lag behind,” CryptoCompare said in the report.

Lower-ranked exchanges can have a whole host of problems, the report said. More than a third of all crypto exchanges have poor or inadequate know-your-customer programs. And 3% do not disclose the legal entities associated with it, while only 11% offer some form of crypto insurance, according to CryptoCompare.

Also Read  Where Can You Watch Tokyo Ghoul On Netflix (2022) - A Step by Step Guide

Arun Agarwal
I am Arun Agarwal, a passionate blogger and gamer. I love to share my thoughts on games and technology through blog posts. I’m also an avid reader of books about history, philosophy, science-fiction, and other genres as well as an anime fan. I like reading books that give me new perspectives or help me think differently about the world around us.