The San Francisco-based cryptocurrency exchange, Coinbase, dominates the BTC/USD markets eclipsing the likes of Kraken, Bitstamp, and Bitfinex, The Block Research reveals.
Meanwhile, in Europe, Bitstamp has galloped ahead of competitors, muscling the BTC/EUR market. At the same time, Bitfinex–mired with controversy, has seen its BTC/USD and BTC/EUR market share fall as parallel observations noted that the exchange was not only hemorrhaging users but BTC was being withdrawn at record volumes.
The Block Research noted that Bitfinex’s BTC/USD market share fell from over 50 percent to less than 20 percent in three years.
Coinbase, Bitstamp, Kraken, And Bitfinex Are Pioneer Crypto Exchanges
Interestingly, Coinbase, Bitfinex, Bitstamp, and Kraken, are market leaders and were among the first digital asset exchanges that have survived the rapidly changing crypto landscape.
Though some—like Bitstamp and Bitfinex, have been hacked, it has re-instituted strict, client-facing measures to prevent fund losses as cryptocurrencies continue to gain traction, attracting top-dollar investors.
Concurrently, given the proliferation of digital currencies, lawmakers around the world continue to formulate laws as mandated to protect investors keen on clipping the market and improving the space’s liquidity.
Coinbase Remains Un-hacked
Coinbase, as the market research finding reveals, is dominant and is one of the few exchanges that has never been hacked.
Although there were claims of a breach during its early days, the exchange boasts of a robust infrastructure that keeps malicious elements away from the client’s funds. By instituting a strict protocol to safeguard funds while liaising with like-minded partners for diversity and security, end user’s confidence continues to rise.
This instead reflects in their increasing market share through the years despite fears of a wavy market marked by crashes, regulator threats, and investor disillusionment.
Trading Volumes are 4X Lower Than Dec 2017’s
Research finding from The Block Research further revealed that despite the increasing interest in crypto assets and trading, the highest monthly volumes so far registered in 2020 is four times smaller than those of Dec 2017. Then, the price of Bitcoin (and altcoins) soared to their all-time high as investors flocked to the crypto scene.
The shrinking trading volumes could be due to depressed prices and the failure of prices to conclusively break away from the crypto winter shackles of 2018. At the depth of 2018, BTC prices fell to $3,200, a year after peaking at $20,000.
Through 2019 and this year’s halving, the Bitcoin trading volumes have slightly recovered but is nowhere near the hysteria of late 2017.