Accounted for up to 64%, this report says cryptocurrency transactions are concentrated on low-quality platforms

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.

Bitcoin

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).

1

(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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

New rules for persuading withdrawals or selling shells for revenue? OSL reportedly withdraws from the Hong Kong Web3 "gold rush".

Author: Blocking, Climber On July 5th, Tencent News' "Qianwang" reported that OSL, a compliant virtual asset trading ...

Blockchain

The head exchange spoiled, but who did not solve the Staking pain point?

It will seize more than 14% of the market share of the currency market, and the choice of the top 100 currencies of t...

Blockchain

The consensus of using "money" to forge coins - a high-tech that condenses developers' miners' exchanges and users

In 1776, the American Revolutionary War broke out. Why is this war going to fight? The American side said that "...

Opinion

What happened during the first week of the SBF case in a comprehensive article?

In the first week of the trial, SBF found itself in a difficult situation with almost all the testimonies and public ...

Blockchain

Why do I always receive "Exchange Withdrawal" messages? Learn about the classification and protection measures of Web3.0 data leakage events in this article.

This article will introduce you to the classification of Web3.0 data breaches and what measures we should take to pr...

Blockchain

Decentralized exchange Newdex strength to play "fake"

From the earliest decentralized exchanges in the EOS ecosystem, it has grown and steadily occupied the top spot of EO...