Study: Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020

Study: Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020

Home / Bitcoin / Study: Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020

A recent study unveiled that top-tier cryptocurrency exchanges increased their market share since October 2020, in the context of lower-risk exchanges. The bitcoin bull market fueled that both retail and professional traders utilized such risk, data shows.

Per information from crypto market data provider cryptocompare.com, top-tier crypto exchange gained 13% market share from October 2020 to January 2021. In fact, it increased from 61% ($347 billion) to 74% ($1.41 trillion).

But the study — which covered over 160 exchanges — clarified the following about the market share’s proportion:

Based on the most recent ranking update, the proportion of Top-Tier exchange volume in Jan 2021 would be 88% to reflect the increase in the number of Top Tier exchanges meeting the minimum threshold – 68 in July 2020 vs 76 in current update.

Cryptocompare highlighted that exchange’s standards “improved” as regulatory requirements toughened to meet anti-money laundering (AML) compliance. Also, they praised that crypto exchanges increased their transparency in terms of data provision.

The research backs up its statement by showing that 44% of the surveyed exchanges “offer the ability to query full historical trade data via a public API endpoint.”

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In terms of security, the crypto market data provider pointed out “fewer hacks” in the last year:

20% of exchanges state that they hold more than 95% of crypto in cold wallets (vs 15% in July 2020). 1% of exchanges have been hacked in the last year (vs 4% as of July 2020). 18% of exchanges use a third party custody provider to store user assets, up from 12% in July 2020 and 9% in our Q4 2019 Benchmark.

Funds’ security was also another topic discussed within the study. According to Cryptocompare, 9% of crypto exchanges formally offer some form of insurance. Moreover, 37% of the surveyed exchanges hold a legal license to run the business.

What do you think about the study’s findings? Let us know in the comments section below.

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Bitcoin price gained bullish momentum above $50K and traded to a new all-time high at …

Source: icryptodesk.com

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Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like Bitcoin (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.

Here are three of the top-performing exchange tokens in 2021 that continue to see upside potential as new investors flood into the market.

Similar to the experience of CryptoKitty users in 2017, the decentralized finance community has discovered that the main drawback of increased usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features like staking, yield farming and collateralization allow investors to profit from holding their investments. These new offerings also allow investors to participate in DeFi-like offerings without worrying about impermanent loss and they also receive access to the latest coin listings.

Binance Coin (BNB) recently experienced a price breakout to a new high of $349.13 on Feb.19 as the top exchange by volume evolves both its centralized and decentralized exchange capabilities alongside further upgrades to the Binance Smart Chain.

Several DeFi-related projects, including Venus (VNS) and Linear Finance (LINA) launched on the BSC in recent weeks which utilizes the BNB token to pay transaction fees on the network.

Binance also offers a continually expanding list of “investment products” that allow users to lend their tokens to the exchange pools in return for varying degrees of yield opportunities depending on lock-up periods and token demand.

Popular coins are quickly added to the growing list of tokens with options or futures trading capabilities, offering something for both devoted community members as well as pessimists who would rather take their chance at shorting newly listed assets.

Trading volume dominance and the benefits of having the first-mover advantage point to further upside potential for the Binance ecosystem and BNB.

Binance’s steady expansion and its active project incubator and Binance Smart Chain are designed to challenge Ethereum’s dominance in the sector, thus there remains a strong possibility that BNB could see an extension of recent gains.

The traditional finance and cryptocurrency markets are slowly beginning to merge and developing products for all types of traders. In 2020, derivatives exchanges also increased in popularity and their trading volumes steadily rose to new highs on a weekly basis.

Following the U.S. government crackdown on controversial derivatives exchange BitMEX, the door was opened for a newer, more community focused option to fill the gap.

FTX Token (FTT) is the exchange token for the FTX cryptocurrency exchange which got its start in the summer of 2019. For much of that first year, FTT traded below $2 with an average trading volume of $2 million as the exchange worked on establishing itself and attracting new users.

The exchange began to see an uptick in activity in 2020 which coincided with an increase in trading volume for FTT as well as its price.

As the platform expanded, additional functionality was added to the token which now includes fee rebates, staking and a ‘Buy & Burn’ mechanism that helps decrease FTT’s circulating supply to increase token value.

Since Dec.11 when FTT was trading at $4.12, a surge in buying volume which reached a peak of $270 million on Feb.19 has propelled FTT to a new record high of $35.01 as the exchange is rapidly becoming the go-to derivatives exchange for the cryptocurrency community.

KuCoin Shares (KCS) has been a late bloomer in this bull market, maintaining a relatively flat token value until the beginning of February when a sudden uptick in trading volume helped elevate KCS price from $1.19 on Feb.2 to a recent high of $3.99 on Feb.19.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KCS on Feb. 18 when it reached a high of 66, less than 24-hours before the price breakout.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the project’s Twitter feed shows that on Feb.4 the biggest announcement coming out of the exchange was the listing of the popular blockchain-based video streaming platform Theta, which had previously been difficult to obtain for U.S. residents.

KuCoin also offers a growing list of tokens available for derivatives trading along with various ways to earn through staking or providing liquidity, with fees generated by the platform distributed to token holders who keep their KCS staked on the exchange.

DeFi may be dominating the conversation in the cryptocurrency sector right now, but major issues including gas fees remain a barrier to widespread adoption.

While the roll out of layer two solutions may offer some relief to this problem, concerns about liquidity across separate blockchains continue to pose significant barriers to a smooth, low-cost trading experience.

Many who are chasing the DeFi hype fail to realize that popular token listings and lower trading fees have led to a resurgence in the use of centralized exchanges.

This translates into a larger user base that conducts more transactions, leading to an increase in trading volumes and healthy price appreciation for underlying exchange tokens like BNB, FTT and KCS.

Centralized exchanges still capture the majority of trading volume and this does not appear to be changing anytime soon. While decentralized exchanges like Uniswap and SushiSwap are growing in prominence and beginning to eat into the market share of centralized exchanges, they still comprise only a small portion of total trading volume seen in the cryptocurrency market.

The battle between exchanges is continuing to heat up and as long as this is the case, the increased inflow to exchange tokens could lead to future upside.

Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.

Source: cryptocurrencystock.com

Author: by Joseph Spezzano


Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like Bitcoin (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.

Here are three of the top-performing exchange tokens in 2021 that continue to see upside potential as new investors flood into the market.

Similar to the experience of CryptoKitty users in 2017, the decentralized finance community has discovered that the main drawback of increased usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features like staking, yield farming and collateralization allow investors to profit from holding their investments. These new offerings also allow investors to participate in DeFi-like offerings without worrying about impermanent loss and they also receive access to the latest coin listings.

Binance Coin (BNB) recently experienced a price breakout to a new high of $349.13 on Feb.19 as the top exchange by volume evolves both its centralized and decentralized exchange capabilities alongside further upgrades to the Binance Smart Chain.

Several DeFi-related projects, including Venus (VNS) and Linear Finance (LINA) launched on the BSC in recent weeks which utilizes the BNB token to pay transaction fees on the network.

What future awaits cryptocurrencies?
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Binance also offers a continually expanding list of “investment products” that allow users to lend their tokens to the exchange pools in return for varying degrees of yield opportunities depending on lock-up periods and token demand.

Popular coins are quickly added to the growing list of tokens with options or futures trading capabilities, offering something for both devoted community members as well as pessimists who would rather take their chance at shorting newly listed assets.

Trading volume dominance and the benefits of having the first-mover advantage point to further upside potential for the Binance ecosystem and BNB.

Binance’s steady expansion and its active project incubator and Binance Smart Chain are designed to challenge Ethereum’s dominance in the sector, thus there remains a strong possibility that BNB could see an extension of recent gains.

The traditional finance and cryptocurrency markets are slowly beginning to merge and developing products for all types of traders. In 2020, derivatives exchanges also increased in popularity and their trading volumes steadily rose to new highs on a weekly basis.

Following the U.S. government crackdown on controversial derivatives exchange BitMEX, the door was opened for a newer, more community focused option to fill the gap.

FTX Token (FTT) is the exchange token for the FTX cryptocurrency exchange which got its start in the summer of 2019. For much of that first year, FTT traded below $2 with an average trading volume of $2 million as the exchange worked on establishing itself and attracting new users.

The exchange began to see an uptick in activity in 2020 which coincided with an increase in trading volume for FTT as well as its price.

As the platform expanded, additional functionality was added to the token which now includes fee rebates, staking and a ‘Buy & Burn’ mechanism that helps decrease FTT’s circulating supply to increase token value.

Since Dec.11 when FTT was trading at $4.12, a surge in buying volume which reached a peak of $270 million on Feb.19 has propelled FTT to a new record high of $35.01 as the exchange is rapidly becoming the go-to derivatives exchange for the cryptocurrency community.

KuCoin Shares (KCS) has been a late bloomer in this bull market, maintaining a relatively flat token value until the beginning of February when a sudden uptick in trading volume helped elevate KCS price from $1.19 on Feb.2 to a recent high of $3.99 on Feb.19.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KCS on Feb. 18 when it reached a high of 66, less than 24-hours before the price breakout.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the project’s Twitter feed shows that on Feb.4 the biggest announcement coming out of the exchange was the listing of the popular blockchain-based video streaming platform Theta, which had previously been difficult to obtain for U.S. residents.

KuCoin also offers a growing list of tokens available for derivatives trading along with various ways to earn through staking or providing liquidity, with fees generated by the platform distributed to token holders who keep their KCS staked on the exchange.

DeFi may be dominating the conversation in the cryptocurrency sector right now, but major issues including gas fees remain a barrier to widespread adoption.

While the roll out of layer two solutions may offer some relief to this problem, concerns about liquidity across separate blockchains continue to pose significant barriers to a smooth, low-cost trading experience.

Many who are chasing the DeFi hype fail to realize that popular token listings and lower trading fees have led to a resurgence in the use of centralized exchanges.

This translates into a larger user base that conducts more transactions, leading to an increase in trading volumes and healthy price appreciation for underlying exchange tokens like BNB, FTT and KCS.

Centralized exchanges still capture the majority of trading volume and this does not appear to be changing anytime soon. While decentralized exchanges like Uniswap and SushiSwap are growing in prominence and beginning to eat into the market share of centralized exchanges, they still comprise only a small portion of total trading volume seen in the cryptocurrency market.

The battle between exchanges is continuing to heat up and as long as this is the case, the increased inflow to exchange tokens could lead to future upside.

Source: cryptopowerful.com

Author: by admin


Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like Bitcoin (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.

Here are three of the top-performing exchange tokens in 2021 that continue to see upside potential as new investors flood into the market.

Similar to the experience of CryptoKitty users in 2017, the decentralized finance community has discovered that the main drawback of increased usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features like staking, yield farming and collateralization allow investors to profit from holding their investments. These new offerings also allow investors to participate in DeFi-like offerings without worrying about impermanent loss and they also receive access to the latest coin listings.

Binance Coin (BNB) recently experienced a price breakout to a new high of $349.13 on Feb.19 as the top exchange by volume evolves both its centralized and decentralized exchange capabilities alongside further upgrades to the Binance Smart Chain.

Several DeFi-related projects, including Venus (VNS) and Linear Finance (LINA) launched on the BSC in recent weeks which utilizes the BNB token to pay transaction fees on the network.

Binance also offers a continually expanding list of “investment products” that allow users to lend their tokens to the exchange pools in return for varying degrees of yield opportunities depending on lock-up periods and token demand.

Popular coins are quickly added to the growing list of tokens with options or futures trading capabilities, offering something for both devoted community members as well as pessimists who would rather take their chance at shorting newly listed assets.

Trading volume dominance and the benefits of having the first-mover advantage point to further upside potential for the Binance ecosystem and BNB.

Binance’s steady expansion and its active project incubator and Binance Smart Chain are designed to challenge Ethereum’s dominance in the sector, thus there remains a strong possibility that BNB could see an extension of recent gains.

The traditional finance and cryptocurrency markets are slowly beginning to merge and developing products for all types of traders. In 2020, derivatives exchanges also increased in popularity and their trading volumes steadily rose to new highs on a weekly basis.

Following the U.S. government crackdown on controversial derivatives exchange BitMEX, the door was opened for a newer, more community focused option to fill the gap.

FTX Token (FTT) is the exchange token for the FTX cryptocurrency exchange which got its start in the summer of 2019. For much of that first year, FTT traded below $2 with an average trading volume of $2 million as the exchange worked on establishing itself and attracting new users.

The exchange began to see an uptick in activity in 2020 which coincided with an increase in trading volume for FTT as well as its price.

As the platform expanded, additional functionality was added to the token which now includes fee rebates, staking and a ‘Buy & Burn’ mechanism that helps decrease FTT’s circulating supply to increase token value.

Since Dec.11 when FTT was trading at $4.12, a surge in buying volume which reached a peak of $270 million on Feb.19 has propelled FTT to a new record high of $35.01 as the exchange is rapidly becoming the go-to derivatives exchange for the cryptocurrency community.

KuCoin Shares (KCS) has been a late bloomer in this bull market, maintaining a relatively flat token value until the beginning of February when a sudden uptick in trading volume helped elevate KCS price from $1.19 on Feb.2 to a recent high of $3.99 on Feb.19.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KCS on Feb. 18 when it reached a high of 66, less than 24-hours before the price breakout.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the project’s Twitter feed shows that on Feb.4 the biggest announcement coming out of the exchange was the listing of the popular blockchain-based video streaming platform Theta, which had previously been difficult to obtain for U.S. residents.

KuCoin also offers a growing list of tokens available for derivatives trading along with various ways to earn through staking or providing liquidity, with fees generated by the platform distributed to token holders who keep their KCS staked on the exchange.

DeFi may be dominating the conversation in the cryptocurrency sector right now, but major issues including gas fees remain a barrier to widespread adoption.

While the roll out of layer two solutions may offer some relief to this problem, concerns about liquidity across separate blockchains continue to pose significant barriers to a smooth, low-cost trading experience.

Many who are chasing the DeFi hype fail to realize that popular token listings and lower trading fees have led to a resurgence in the use of centralized exchanges.

This translates into a larger user base that conducts more transactions, leading to an increase in trading volumes and healthy price appreciation for underlying exchange tokens like BNB, FTT and KCS.

Centralized exchanges still capture the majority of trading volume and this does not appear to be changing anytime soon. While decentralized exchanges like Uniswap and SushiSwap are growing in prominence and beginning to eat into the market share of centralized exchanges, they still comprise only a small portion of total trading volume seen in the cryptocurrency market.

The battle between exchanges is continuing to heat up and as long as this is the case, the increased inflow to exchange tokens could lead to future upside.

Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.

Source: cryptocurrencytrend.com

Author: by Joseph Spezzano


South Korean financial authorities to keep a watch on crypto exchanges - TCR

South Korean financial authorities to keep a watch on crypto exchanges – TCR

South Korea gets financial watchdogs over crypto exchanges next month

  • South Korean Financial Regulators request the trading platforms to report any suspicious activity
  • Authorities of Financial Intelligence Unit (FIU) asked crypto exchanges to obtain license to work 
  • Regulators have also asked the exchanges to delist the privacy coins

Just a month left to take control of the crypto exchanges of the country. The South Korean Financial authorities FIU have asked the crypto exchanges of the country to file the application to obtain a license to work smoothly and inform them of any suspicious activity or transactions happening on their platform. 

The South Korean Financial Regulators have requested all the trading platforms to report suspicious activities & transactions. The South Korean financial regulators are all set to policing the activities of the nation’s crypto exchanges. This is almost after a month. 

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The authorities informed that they urged the crypto exchanges to inform them about any kind of suspicions happening on the exchanges. Detailed information about actions has been given. 

The Electronic Times and Yonhap, the prominent news publications recently revealed that a new batch of regulatory requirements comes from the Financial Services Commission’s Financial Intelligence Unit. FIU is the body that deals with anti-money laundering and combating the financing of terrorism (AML/CFT), related matters in South Korea. 

The role of FIU is very crucial in combating the suspicious activities and putting an end to it. This could only be done, when the country’s exchanges inform about the suspicious activities immediately when they suspect something wrong is happening. They require exchanges to flag and inform about any unusual-looking transactions happening on their platform within three working days. Also all the transactions’ value should be reported in traditional currency (KRW). 

Regulators have also asked the exchanges to delist the privacy coins. This was first announced in November 2020. FIU will have the final say on how these exchanges will function and are policed. A manual has also been made for the exchanges to understand how they should follow the rules and regulations once the crypto specific laws are promulgated next month. The exchanges will now have to apply for a license if they want to operate smoothly in the country. 

The license will be given only when they will provide FIU with the proof that they have obtained information management system certification, have real name authenticated banking contracts in place with domestic banks. They also want proof  that qualified staff is hired, who will play a key role in decision making and security related roles. 

The necessary documents will be submitted by September 25 to the FIU. The FIU has the authority to forcibly close, audit or conduct spot checks on non-compliant platform operators. 

Steve Anderrsonhttp://www.thecoinrepublic.com

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Source: www.thecoinrepublic.com

Author: Steve Anderrson


Study: Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020

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