Top tier cryptocurrency exchanges only account for one-third of global spot trading volumes, according to the updated Exchange Benchmark from leading cryptoasset data provider CryptoCompare.

CryptoCompare’s Exchange Benchmark looked into 160 spot cryptocurrency exchanges, and refined its methodology to give more weight to key management experience, and to add greater details to exchanges’ security and insurance provisions. Among its criteria were the quality of exchanges’ markets, geographical location, legal status, and data provision.

CryptoCompare found that top-tier cryptocurrency exchanges – those graded AA-B – account for 33% of the global trading volume, while lower-tier exchanges – those rated C-E – account for 67%.

In a report published back in September, the firm found that lower-tier cryptocurrency exchanges represented a total of 71.1% of the cryptocurrency space’s trading volume, with ratings from D-E being counted at the time.

LBank, an exchange that moved up 9 spots in rankings in the updated Exchange Benchmark and went from a D to a C grade, was seeing trade sizes an average of “roughly fourteen times” those of the AA-rated exchange Coinbase.

Lower-tier exchanges may be leading in terms of trading volumes due to the controversial trans-fee mining (TFM) model some trading platforms adapt, and other types of trading incentives. CryptoCompare found 41% of exchanges were incentivizing trade through rewards or airdrops, while 14% adopted the controversial TFM model.

As CryptoGlobe reported, previous reports found exchanges adopting the TFM revenue model had unusually thin order books and a low amount of traffic.

The top cryptocurrency exchanges, per CryptoCompare’s Benchmark, are: Gemini, ItBit, Coinbase, Kraken, Bitstamp, Liquid, OKEx, Poloniex, bitFlyer, and Bitfinex. Reacting to Gemini’s leading position the firm’s managing director of operations Jeanine Hightower-Sellitto stated:

Security has been a key Gemini pillar since inception and protecting our customers’ cryptocurrency is a priority as we build the future of money. Our institutional and retail investors need a secure marketplace to buy, sell, and store their cryptocurrency, and we are pleased to be recognized for providing that to the industry.

Notably this also means the top four cryptocurrency exchanges are located in the United States.

Featured image via Unsplash.