CryptoCompare’s updated Exchange Benchmark report found that Top-Tier cryptocurrency exchanges, those graded AA-B according to the benchmark, are gaining market share against Lower-Tier exchanges, those graded C-E.
In the second quarter of 2020, Top-Tier trading platforms already accounted for 40% of global trading volumes, moving up from 32% in Q4 2019, and from 36% in the first quarter of this year. In June, Top-Tier exchanges accounted for 46% of the global trading volumes.
In contrast, Lower-Tier exchanges represented 68% of the cryptocurrency’s spaces trading volumes in Q4 2019, but their market share has slowly been declining to 60% in the second quarter of the year. In June, their share was at 54%.
CryptoCompare’s updated Exchange Benchmark now includes a know-your-customer (KYC) risk category that uses CipherTrace’s KYC and Integration Risk Ratings, and an Asset Quality/Diversity Category offered in collaboration with Flipside Crypto’s FCAS ratings.
Other changes include the addition of a specific ranking made for decentralizes exchanges, and the expansion of the grading system to include a “BB” category. The report also looks at cryptoassets’ security practices, interactions with high-risk entities, and more.
Source: https://www.cryptocompare.com/email-updates/daily/2020/jul/14/
