Last month, Top-Tier cryptocurrency exchanges have seen their trading volumes soar by 58.3%, while Lower-Tier crypto trading platforms saw their volumes increase 30.2% over the same period. Top-Tier trading platforms now represent 64% of the crypto space’s total trading volume.
The data comes from CryptoCompare’s August 2020 Exchange Review, with exchange rankings coming from CryptoCompare’s Exchange Benchmark. Top-Tier exchange, those graded AA-BB, traded a total of $529 billion last month, while Lower-Tier exchanges, graded C-E, traded a total of $291 billion.
According to CryptoCompare’s report, trading activity across all spot markets increased in August compared to July, as the price of the flagship cryptocurrency bitcoin remained above the $11,000 mark and interest in decentralized finance (DeFi) kept on growing.
Last month, CryptoGlobe reported that Top-Tier cryptocurrency exchanges were beating riskier platforms as crypto trading volumes started to recover. Data from the cryptoasset data provider shows that in Q4 2019 Top-Tier platforms only accounted for 32% of global spot volumes, while in the first quarter of the year they accounted for 36%.
In Q2 2020, top trading platforms saw their share of the market grow to 40%, while in June their volume got to 46%. Investors have likely slowly moved towards safer platforms as the price of bitcoin stayed in five-figure territory.
CryptoCompare’s August 2020 Exchange Review also shows that exchanges charging traditional taker fees represented 84% of the total exchange volumes in August, while those implementing the controversial trans-fee mining (TFM) model represented less than 16%. TFM exchange’s market share has also been dropping over time.
Fee-charging exchanges traded a total of $685 billion in August, while those implementing TFM models traded $125 billion. The report adds that out of the Top-Tier exchanges, Binance, OKEx, and Huobi Global have been dominating the market.
These three exchanges have, among the top 15 Top-Tier exchanges, represented 74% of the total volume in August, up from 63% in July.
Featured image via Pixabay.
