According to the November 2020 issue of CryptoCompare Research’s “Exchange Review” report, last month, Binance was the #1 “Top Tier” crypto exchange by monthly spot trading volume.
On Tuesday (December 8), the research arm of CryptoCompare, which is one of the leading cryptoasset market data providers, released the latest issue of its monthly “Exchange Review” report. This report aims to capture the key developments within the cryptocurrency exchange market, and it focuses on analyzing exchange volumes, which include those related to crypto derivatives trading, market segmentation by exchange fee models, and crypto to crypto vs fiat to crypto volumes.
In this article, we focus on the section of the report that looks at the trading volumes across Top Tier spot exchanges.
In case you are wondering what CryptoCompare means by “Top Tier”, it is worth explaining how CryptoCompare Research ranks crypto exchanges.
CryptoCompare’s Exchange Ranking methodology currently uses a combination of 68 qualitative and quantitative metrics to assign a grade to over 165 active spot exchanges. Each metric is converted into a series of points based on clearly defined criteria. Metrics are categorised into several buckets, and distributed fairly to arrive at a final robust score, ensuring that no one metric overly influences the overall exchange ranking.
A grading system was implemented to assign each exchange a grade (AA, A, BB, B, C, D, E, F) based on its total cumulative score out of 100. Top-Tier exchanges refer to those that have scored at least 45 points (B and above).
Now, going back to the November 2020 issue of the Exchange Review report, it seems that Bitcoin’s strong rally in November was a huge help to crypto exchanges. In particular, in the case of the top 15 Top Tier exchanges, monthly spot trading volume on average increased by 114% compared to October, with Binance managing to capture 44% of the total sport trading volume for the month.
Here is what the monthly spot trading volume across the Top Tier exchanges looks like for the months of September, October, and November:
As you can see, Binance (Grade A) was the largest Top-Tier exchange by volume in November, trading $176.2bn (up 133%). This was followed by Huobi Global (Grade BB) trading $72.1bn (up 73%), and OKEx (Grade BB) trading $45.9bn (up 43%).
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.