Cryptocurrency Market Cap Over $1 Trillion - BTC Trading Over $50k.
2021-02-17 | Big Bob
![Cryptocurrency Market Cap Over $1 Trillion - BTC Trading Over $50k.]()
Among 160 different cryptocurrency exchanges analyzed
within a recent report, half control roughly 85% of
the entire market share.
In line with a recent official
report by CryptoCompare Research, the exchanges that the analytics firm rated as “top tier” gained 13% of the market share from October 2020 to January 2021. This put the market share
of those 84 exchanges at roughly 74%, with over $1 trillion in assets.
Moreover, CryptoCompare revealed this percentage likely rose to 85% for January.
As long as the entire market capitalization of all crypto assets is $1.47 trillion at the time of reporting, the market share
of those exchanges may now be over $1.2 trillion.
The report attributed
the rise in market share to retail and pro cryptocurrency traders turning to exchanges with seemingly lower risk
as the price of the leading cryptocurrency Bitcoin [
BTC] surged past $20k earlier in late December last year and $30k later in January.
However,
one among the more significant reasons for this increased market share
could also be CryptoCompare rating 16 more exchanges as “top tier” than in October 2020 - a designation meant
to live an exchange's level of risk
instead of its superiority. The firm explained
that a lot of exchanges are now complying with “toughened” KYC and AML requirements. Many
also are offering increased transparency and improving their overall operational status.
As per CryptoCompare’s results, 44% of the 160 exchanges analyzed offer
the power to “query full historical trade data via a public API endpoint,” compared with 37% in July last year. Additionally,
the share of exchanges rated as having “poor or inadequate” KYC systems consistent with CipherTrace fell from 44% earlier in July 2020 to 33% in January.
The report specifically mentions Coinbase, Gemini, Bitstamp, Kraken, itBit, and Luno
as the "lowest risk exchanges. Others
like Binance, FTX, OKCoin, Huobi Global, and Bitfinex are listed
within the next "lower tier" category.
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