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8 Exchanges Control The Majority Of Crypto Liquidity
09/15/2023

8 Exchanges Control The Majority Of Crypto Liquidity

09/15/2023
4,2

A recent BanklessTimes report shed some light on the crypto industry's ratio of exchanges to circulating assets.

According to a BanklessTimes report, 90% of cryptocurrency liquidity is controlled by Binance, Coinbase, Kraken, OKX, KuCoin, Bybit, Binance.US and Bitfinex. The data in the report makes one wonder about the state of the entire industry. Experts from BanklessTimes believe that this is a serious problem that prevents the sector from realizing its full potential.

BanklessTimes highlighted that such a concentration of liquidity has its pros and cons. The community should find solutions to eliminate risks without sacrificing benefits.

BanklessTimes also explained the dominance of specific exchanges. Many platforms appeared at an early stage of crypto space development and managed to gain the trust of the public at large. Also, exchanges offer a variety of digital assets and services, which attracts users.

The advantages of concentrating liquidity on such a small number of exchanges include possible price stability and the elimination of spreads and slippages. Risks include centralization and market manipulation.

To minimize risks, it was suggested to stimulate the development of decentralized exchanges and develop new mechanisms for distributing liquidity across exchanges.


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The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.

Binance Binance.US Bitfinex ByBit Coinbase Exchange Kraken KuCoin OKX


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