According to a recent study by Kaiko, Binance has maintained its position as the leader in liquidity among 43 cryptocurrency exchanges surveyed in the second quarter of 2024. This finding highlights Binance’s dominance in the cryptocurrency market in terms of trading volume and liquidity.
Following closely behind Binance is the South Korean exchange Upbit, which surprisingly ranks 10th in liquidity despite its high trading volume. It is worth noting that Upbit has a low activity score and only one person in its management team, which may have contributed to its lower ranking in the study.
The study also revealed the 10 largest cryptocurrency exchanges by average trading volume, with Binance emerging as the most liquid exchange and recording the highest trading volume on average during the three-month period. The volume disparity between Binance and Upbit, as well as other exchanges, is notable, with Binance offering twice as many assets as Upbit and having a trading volume four times higher.
Although Binance leads in terms of trading volume and liquidity, it ranks third behind Coinbase and Bitstamp when additional factors such as governance scores are considered. This suggests that while Binance excels in trading volume and asset diversity, it may fall short in terms of governance compared to its top competitors.
In the realm of market depth, LMAX stands out due to its enterprise focus, with only five altcoins available for spot trading on the exchange. This focus on a limited number of assets may contribute to LMAX’s high ranking in terms of market depth, despite offering fewer assets than other exchanges.
Overall, the study by Kaiko highlights Binance’s continued dominance in liquidity and trading volume in the cryptocurrency market. While Binance excels in these areas, it lags behind competitors such as Coinbase and Bitstamp in terms of governance scores. With the cryptocurrency market constantly evolving, it will be interesting to see how Binance and other exchanges adapt to stay ahead in this competitive landscape.
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