CryptoCompare, a cryptocurrency data company, said in a report released on Wednesday that untrustworthy exchanges still account for the largest share of global cryptocurrency transactions.
In July of this year, low-quality exchanges rated DE accounted for 64% of the transaction volume – an astonishing $316 billion, while the highest-rated AA platform only accounted for 5%, or $31 billion.
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Macro analysis and market segmentation
Low-quality exchanges dominate – based on CryptoCompare's exchange benchmark rating, AA-rated exchanges grew by 29%, but poorer-quality trading volumes still dominated. In July, AA-rated exchanges accounted for only 5% of the total volume ($31 billion), while those with ratings of A and B accounted for 19% ($119 billion) and 8% ($47 billion). Volume is still dominated by poorer-quality exchanges, with D-to-E-rated exchanges accounting for 64% ($316 billion).
(The distribution of trading volume of each level of exchange, image source: CryptoCompare )
Trading volume from trusted exchanges (scores from AA to B) increased by 4.4%, while transactions from untrusted exchanges (C to F) increased by only 0.7%. Overall, the volume of trusted transactions still accounts for only 32% of the entire market.
The volume of transactions is different from the volume of transactions – the untrustworthy exchanges LBank, Coinsbit and CoinBene have the largest average transaction volume of 3.7 BTC, 1.6 BTC and 1.1 BTC. The average transaction value of the BTC/USDT trading pair for LBank (score D) is approximately 15 times that of Coinbase (score AA). In terms of the number of transactions, LBank trades an average of 25,000 transactions per day, and Coinbase's BTC/USDT and BTC/USD transactions have more than 100,000 single-day transactions.
The transaction is the mining heat loss – the transaction fee is 75% of the total transaction volume in July, while the transaction-traded (TFM) exchange accounted for 23%. In July, the total amount of exchanged exchange transactions was $445 billion (up 0.4% since June), while the total amount of transactions implemented in TFM was $137 billion (down 5% since June).
Bitcoin (institutional) derivatives trading continues to be hot – compliant bitcoin derivatives transactions are still dominated by the Chicago Mercantile Exchange (CME). Since June, the total volume of CME transactions has increased by 4.23% to reach $8.2 billion. At the same time, the total transaction volume of Grayscale's Bitcoin Trust GBTC continued to grow, reaching $1.98 billion in July (an increase of 6.02% since June).
BitMEX futures trading volume is still leading – BitMEX's total sustainable bitcoin futures product volume is $68 billion, and BitFlyer bitcoin futures total volume is $31 billion. BitMEX's trading volume has increased by 5.51% since June, while BitFlyer Lighting's trading volume has dropped by 6.92%. Although BitMEX has a large record of bitcoin outflows and it has been investigated by the US Commodity Futures Trading Commission (CFTC), its trading activity has increased since June.
The currency exchange dominates – the currency exchange accounted for 84% of the total transaction volume ($497 billion), while the French exchange accounted for 16% ($93 billion), compared to earlier data. The ratio has not changed much.
Bitcoin and US dollar transactions accounted for nearly 50% of the total – in July this year, BTC and US dollar transactions accounted for 48% of transactions, from 2.04 million BTC in June to 2.11 million BTC in July (up 4%). At the same time, BTC's trading volume against the yen was 1.37 million BTC (up 25% since June), and the trading volume against the euro was 442,000 BTC (an increase of 1.78% since June). In July, BTC and USDT transactions accounted for 67.6% of the total transaction volume, reaching 9.25 million BTC (an increase of 18% since June).
Find reality from fictional data
More and more people in the industry are aware of the prevalence of unreliable trading platforms, false trading volumes and market manipulations (including strategies such as fraudulent trading and fraud).
In mid-March, bitcoin asset management company Bitwise released a report on bitcoin transaction data, pointing out that 95% of the bitcoin transactions provided by data service provider CoinMarketCap were counterfeited.
In June of this year, CoinMarketCap issued an ultimatum to all exchanges in the global cryptocurrency market, asking them to provide accurate data and saying that if they did not fully report transaction data, transaction volume and other relevant information, the site would refuse to provide. Its information.
The cryptocurrency trading market is very active, with global transactions amounting to $55.4 billion at the time of publication. When participating in trading activities, the most important thing for users is to choose a reliable exchange.
Today, the failure of Amazon AWS service in Japan caused a lot of exchange API errors, and the price of some small exchanges was abnormal, which seriously affected the user experience. In this case, large and reliable exchanges can identify and resolve problems in a more timely manner. In addition, the first choice for storing cryptocurrency assets is always to master the private key independently, rather than relying too heavily on the exchange.