Market share of top crypto exchanges passes $1T: CryptoCompare report – Cointelegraph

Out of the 160 cryptocurrency exchanges analyzed in a recent report, half control roughly 85% of the total market share.

According to a CryptoCompare Research report published today, exchanges that the analytics firm rated as “top tier” gained 13% of the market share from October 2020 to January. This put the market share of these 84 exchanges at roughly 74%, with more than $1 trillion in assets.

However, CryptoCompare said this percentage likely rose to 85% for January. Given that the total market capitalization of all cryptocurrencies is $1.47 trillion at the time of publication, the market share of these exchanges may now be more than $1.2 trillion.

Source: CryptoCompare

The report attributed the increase in market share to retail and professional crypto traders turning to exchanges with seemingly lower risk as the price of Bitcoin (BTCsurged past $20,000 in late December 2020 and $30,000 in January. 

However, one of the more significant reasons for the increased market share may be CryptoCompare rating 16 more exchanges as “top tier” than in October 2020 — a designation meant to measure an exchange’s level of risk rather than its superiority. The firm noted that many exchanges are now complying with “toughened” Know Your Customer and Anti-Money Laundring requirements. Many are also providing increased transparency and improving their overall operational status. 

According to CryptoCompare’s results, 44% of the 160 exchanges analyzed offere the ability to “query full historical trade data via a public API endpoint,” compared with