8 Exchanges Control The Majority Of Crypto Liquidity
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.
Binance Binance.US Bitfinex ByBit Coinbase Exchange Kraken KuCoin OKX
