Coinbase Ranks Top Among Crypto Exchanges, ‘Oligopoly’ Seen on Horizon
Categories: US
The US-based crypto exchange Coinbase came in with the top score in CryptoCompare’s latest Exchange Benchmark Report, with a strong team and compliance with regulations making the exchange stand out among its peers. Meanwhile, further industry consolidation is expected, with the possibility of “an oligopoly” forming.Among the four exchanges, Bitstamp and Gemini both scored significantly higher than others in terms of the “quality/diversity of assets.” Coinbase, meanwhile, scored markedly higher than the others in terms of the team and regulation. All exchanges were ranked by eight different qualities, including Know Your Customer (KYC)/transaction risk, quality/diversity of assets, legal/regulation, data provision, security, team/exchange, negative reports, and market quality.The exchanges were given grades ranging from AA for the best exchanges to E for the worst ones. Top-tier exchanges gain market share Further, the report said that top-tier exchanges have gained market share at the expense of low-tier ones.“Top-Tier exchanges have increased their market share from 89% in Aug 2021 (based on Aug 2021 rankings) to 96% in February 2022 (based on the latest Feb 2022 rankings) as both retail and professional traders move to lower risk exchanges,” CryptoCompare said. Increased attention from regulators While traders are increasingly moving to large and safer exchanges, regulators across the world are also increasing their pressure on exchanges, CryptoCompare said.aAccording to the report, regulators have paid more attention to centralized exchanges over the past six months in particular, with regulators in both the EU and the US expressing concerns about the growth of the industry.