Top-Tier Crypto Exchanges Now Represent Less Than 30% of Total Volume, Report Shows

The aggregate trading volume of top-tier cryptocurrency exchanges has dropped 26.26% last month, while the trading volume of lower-tier cryptocurrency exchanges dropped less than 20%.

According to the CryptoCompare December 2019 Exchange Review, the trading volume of cryptocurrency exchanges that, according to CryptoCompare’s Exchange Benchmark tool, are rated AA-B dropped to represent only around 27.4% of the total market.

This means the market share of lower-tier exchanges, rated C-F, increased, even though these platforms saw their trading volumes drop by 19.9%. As CryptoGlobe reported, CryptoCompare’s November report showed the volume of top-tier exchanges dropped nearly 7% that month, while that of lower-tier platforms rose 3.7%.

In November, top-tier cryptocurrency exchanges represented 31.4% of the total market, while in October they account for 33% of the trading volume, while lower-tier exchanges only had 67% of the market share.

trading volume by tier of exchangeSource: CryptoCompare

CryptoCompare’s Exchange Review also covers cryptocurrency derivatives, pricing data, and more. It notes that Binance has become a major derivatives player since it launched its futures products in September, with its BTC perpetual future now being the third most traded product by total monthly volume, at $29.4 billion.

Both Binance and BitMEX represented the majority of the Ethereum perpetual futures market, with 44% and 23% of the volume respectively. OKEx was, however, the top derivatives exchanges in USD terms, trading a total of $99.6 billion in December.

As for regulated bitcoin derivatives products, the CME is still dominating the market, even though total volumes fell 6.2% to $3.96 billion.  Grayscale’s bitcoin trust product, on the other hand, fell 19.6% to $394.72 million.

The report also addresses trans-fee mining cryptocurrency exchanges, noting the top TFM exchange, Bitforex, saw its trading volume rise 5.37% in December, while the second-largest TFM exchange, CoinBene, saw its volume drop nearly 12%.

Decentralized exchanges still only represent 0.01% of the total trading volume in the cryptocurrency space, according to the report, with IDEX being the largest one, trading $8 million in December.

Featured image by Lukas from Pexels.