A recent study unveiled that top-tier cryptocurrency exchanges increased their market share since October 2020, in the context of lower-risk exchanges. The bitcoin bull market fueled that both retail and professional traders utilized such risk, data shows.
Stricter Regulations Boosted Transparency Levels in Crypto Exchanges
Per information from crypto market data provider cryptocompare.com, top-tier crypto exchange gained 13% market share from October 2020 to January 2021. In fact, it increased from 61% ($347 billion) to 74% ($1.41 trillion).
But the study â€” which covered over 160 exchanges â€” clarified the following about the market shareâ€™s proportion:
Cryptocompare highlighted that exchangeâ€™s standards â€œimprovedâ€ as regulatory requirements toughened to meet anti-money laundering (AML) compliance. Also, they praised that crypto exchanges increased their transparency in terms of data provision.
The research backs up its statement by showing that 44% of the surveyed exchanges â€œoffer the ability to query full historical trade data via a public API endpoint.â€
Improvements Seen in Security
In terms of security, the crypto market data provider pointed out â€œfewer hacksâ€ in the last year:
Fundsâ€™ security was also another topic discussed within the study. According to Cryptocompare, 9% of crypto exchanges formally offer some form of insurance. Moreover, 37% of the surveyed exchanges hold a legal license to run the business.
What do you think about the studyâ€™s findings? Let us know in the comments section below.
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