The Exchange Benchmark Report For July 2020 Has Been Released

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • The Exchange Benchmark launched a year ago intending to provide transparency to the cryptocurrency exchanges.
  • The top 2 exchanges with AA ratings are Gemini and Coinbase.
  • The next 9 exchanges with A ratings are Kraken, itBit, Bitstamp, Liquid, bitFlyer, Binance, Bitfinex, Cex.io, LMAX Digital.

Cryptocompare Research has recently released the Benchmark report for July 2020. The Exchange Benchmark launched a year ago intending to provide transparency to the cryptocurrency exchanges. It essentially gives us a framework for evaluation based on eight different but essential categories, which are regulation, KYC/transaction risks, security, data provision, team, assets quality and diversity, market quality, and adverse events penalty. It’s evaluation approach implements in-depth data sets of over 165 cryptocurrency exchanges. 

Exchanges Solely Ranked based on Overall Risk

However, it is important to note that this grading in no way determines the domination of exchanges. It solely ranks the exchanges based on the overall risk. The grades given by the Exchange Benchmark range from AA to E. The exchanges ranked between AA to B considered top tier exchanges. In contrast, the exchanges ranked below them regarded as low tier exchanges. 

Here’s An Overview of The Top 20 Cryptocurrency Exchanges: 

The top 2 exchanges with AA ratings are Gemini and Coinbase. The next nine exchanges with A ratings are Kraken, itBit, Bitstamp, Liquid, bitFlyer, Binance, Bitfinex, Cex.io, LMAX Digital.

The last nine exchanges in the top 20 list all have a rating of BB. They are FTX, Luno, Bittrex, OKCoin, Currency.com, Huobi Global, OKEx, Poloniex, and Independent Reserve. As we can see the US-based crypto exchange, Gemini has topped the list with Coinbase and Kraken following up in the 2nd and 3rd, respectively.

The lower tier exchanges have been consistently losing their market shares. Top tier exchanges contributed a total of 32% in the last quarter of 2019 and 36% and 40% in the Q1 and Q2 of 2020, respectively. However, the contribution rate for the lower tier has declined in the last three quarters. 

Top DEX Exchange Is Binance DEX Followed By Switcheo And IDEX

The Benchmark report also provides an evaluation framework for spot exchanges. The so-called DEX methodology is based on Market quality, security, team, data provision, engagement, legal, asset quality and diversity, adverse events penalty. The top 3 DEX exchanges are Binance DEX, Switcheo, IDEX and have a DEX rating of BB. Followed by DDEX, Uniswap, Bisq, and they have a rating of B. The next two exchanges have a rating of D and are Aidosmarket, Poloni DEX. The last two on the top 10 list are Everbloom and TNDEX.

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