Kaiko Analytics Says Binance Leads Coinbase and All Other Crypto Exchanges in This Metric

  • Digital asset analytics company Kaiko claims that cryptocurrency exchange Binance continues to dominate the field in a number of areas.
  • According to a recent analysis by Kaiko, Binance tops the list of the top 10 cryptocurrency exchanges in terms of liquidity, followed by Bybit and Coinbase.

Exchanges with high liquidity provide better trading conditions, including less slippage and lower execution risk. We’ve chosen to create a liquidity score for this quarter’s exchange ranking using five indicators, including volume and market depth, even though there are other ways to assess liquidity.

The largest exchange in the world, Binance, is surprisingly in the lead when comparing the liquidity rankings of the 43 exchanges. When further aspects like governance scores are taken into account, Binance trails Coinbase and Bitstamp in third position, but still trails its top rivals.

A combination of the exchanges’ trading volume, share of volume, market depth, coefficient of variation dispersion score, and market quality score is used by the analytics company to determine its liquidity ranking.

According to Kaiko, Binance had by far the highest trade volume in the first quarter of this year.

Second position went to Upbit. However, Kaiko claims that because Binance has more openness than the Korean cryptocurrency market, it ranks lower overall.

Currently, Binance looks to be the most liquid exchange as well as the one with the greatest average trading volume during the three months under consideration when looking at the top 10 rated exchanges for this quarter. 

It’s interesting to see that Upbit, a South Korean exchange, behind Binance in this ranking. Upbit appears to have a high volume, but its low business score keeps it at 10th overall. There is only one member of the exchange’s executive staff that is known to exist.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

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