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CryptoCompare’s Exchange Review aims to capture the key developments within the cryptocurrency exchange market. Our review focuses on analyses that relate to exchange volumes, which include those related to crypto derivatives trading, market segmentation by exchange fee models, and crypto to crypto vs fiat to crypto volumes.
Macro Analysis and Market Segmentation
- Exchange Benchmarking Analysis – Based on CryptoCompare’s Exchange Benchmark grading, AA-graded exchange volume is up 29% while lower quality volume still dominates. Exchanges with grades AA represented 5% (31 billion USD) of total aggregate volume in July, while those rated A and B represented 19% (119 billion USD) and 8% (47 billion USD) respectively. Trading volume is still dominated by lower quality exchanges, with D-E rated exchanges representing 64% combined (316 billion USD).On aggregate, volume from trusted exchanges (AA-B) increased 4.4% while volume from untrusted exchanges (C-F) only increased 0.7%. Aggregate trusted exchange volume still only represents 32% of the total market.
- Trade Data Analysis – Untrusted exchanges LBank, Coinsbit and CoinBene had the largest average trade sizes relative to other top exchanges at an average of 3.7, 1.6 and 1.1 BTC respectively. LBank’s (D-rated) average trade size within its BTC/USDT market was roughly 15 times higher than that of Coinbase’s (AA-rated) BTC/USD market. In terms of trade count, LBank traded an average of 25,000 trades per day, while Coinbase traded over 100,000 trades per day on BTC/USDT and BTC/USD markets respectively.
- Predominant Fee Type – Exchanges that charge taker fees represented 75% of total exchange volume in July, while those that implement trans-fee mining (TFM) represented 23%. Fee-charging exchanges traded a total of 445 billion USD in July (up 0.4% since June),