CryptoCompare Report: Top-Tier Crypto Exchanges Beat Riskier Platforms in July


According to CryptoCompare, trading volumes of top-tier cryptocurrency exchanges surged in July, and these represent 60% of the total spot volume.

August 17, 2020 | AtoZ Markets – CryptoCompare has published its July 2020 cryptocurrency Exchange Review, giving an insight into last month’s exchange volume data and trends. Top cryptocurrency exchanges have seen their trading volumes surge throughout July, so much so these now represent 60% of the crypto space’s total spot volume.

Top-Tier crypto exchange volumes surged, gaining market share

According to CryptoCompare’s exchange review, Top-Tier cryptocurrency trading platforms, those graded AA-B according to the firm’s Exchange Benchmark, have seen their spot volumes increased by 42.1% to $334 billion last month, which helped them surpass lower quality exchanges.

Lower-Tier exchanges, according to the report, saw their volumes decrease 38.1% to $224 billion in July. The volume is dwindling on riskier cryptoasset trading platforms as investors likely moved toward safer cryptocurrency exchanges. That was when the crypto market started rising after bitcoin’s price rose above $10,000.

Top-Tier cryptocurrency exchanges have been gaining market share over the last few months against those graded C-E on the Exchange Benchmark. In Q4 2019, Top-Tier platforms accounted for 32% of global volumes. However, in the first quarter of 2020, they accounted for 36%.

In Q2 2020, these trading platforms saw their share grow to 40% of the total spot trading volumes. Nevertheless, in June the volume was already 46%. Lower-Tier exchanges, over the same period, saw their volumes drop from 68% to 54%.

Derivatives volumes soared on July 27th

In July, cryptocurrency trading volumes picked up near the end of the month. That was after BTC finally broke out of its two-month-long range between $9,000 and $10,000.  The uptrend saw the global trading volume hit $45.3 billion on July 27th, making it one of the days with the largest recorded volumes in the crypto space.

Moreover, March 13 saw the highest spot volumes ever, as the cryptocurrency market crash that month. This occurred when top U.S. indexes entered the bear market territory and the World Health Organization declared the COVID-19 outbreak a pandemic, saw traders exchange a total of $75.9 billion in a single day.

In July, exchanges using the traditional taker-fee model represented 82% of total exchange volumes. Meanwhile, those implementing the controversial trans-fee mining (TFM) model represented less than 18% of the trading volume.

CryptoCompare’s report also adds that fee-charging exchanges traded a total of $456 billion last month, up 0.5% from June. However, those that implemented TFM models traded $95 billion, down 32% from the month before.

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