Reported volume’ is the default metric that people look for when determining the ranks of crypto exchanges. ‘Reported’ and ‘adjusted’ volumes wildly differ on sites like CoinMarketCap.com. For example, if you look at the image below, you’ll notice a wild difference in “reported” and “adjusted” volumes at press time.
RANKING EXCHANGES BEYOND THEIR “VOLUME”
ViewBase, a “market insights and community” platform centered around cryptocurrency, recently published a report which details other ways we might rank exchanges. Rankings could be based on real facts, like how much crypto they hold or the value of all their tokens combined.
The platform watches for large movements of various coins, including stablecoins, and provides traders the opportunity to discuss observations. It’s a bit like TradingView but crypto-centric.
Ranking exchanges purely by volume – reported or otherwise – may soon be a fallacy in and of itself, as the trend of “initial exchange offerings” gives rise to more “transaction mining.” Transaction mining is where users earn tokens for making trades; this may increase the volume but does it mean the exchange is more significant?
THREE NEW WAYS TO OBJECTIVELY RANK EXCHANGES
So ViewBase looks at three new ways to rank exchanges.
The first way is by ether balances.
Kraken holds the most Ethereum. Source: ViewBase
Kraken, with nearly 3 million ether, by far has the deepest pockets. Kraken’s volume in ether is interestingly currently ranked No. 98, with less than 1% of Ethereum’s alleged daily volume of more than $7.4 billion.
A ViewBase report suggests crypto exchanges could be ranked based on a trio of different metrics. |
RANKING EXCHANGES BEYOND THEIR “VOLUME”
Notice the difference between “reported” and “adjusted” volume on CoinMarketCap.com
ViewBase, a “market insights and community” platform centered around cryptocurrency, recently published a report which details other ways we might rank exchanges. Rankings could be based on real facts, like how much crypto they hold or the value of all their tokens combined.
The platform watches for large movements of various coins, including stablecoins, and provides traders the opportunity to discuss observations. It’s a bit like TradingView but crypto-centric.
Ranking exchanges purely by volume – reported or otherwise – may soon be a fallacy in and of itself, as the trend of “initial exchange offerings” gives rise to more “transaction mining.” Transaction mining is where users earn tokens for making trades; this may increase the volume but does it mean the exchange is more significant?
THREE NEW WAYS TO OBJECTIVELY RANK EXCHANGES
So ViewBase looks at three new ways to rank exchanges.
The first way is by ether balances.
Kraken holds the most Ethereum. Source: ViewBase
Kraken, with nearly 3 million ether, by far has the deepest pockets. Kraken’s volume in ether is interestingly currently ranked No. 98, with less than 1% of Ethereum’s alleged daily volume of more than $7.4 billion.
Kraken may have the most Ethereum, but they don’t do the most trading. Source: CoinMarketCap.com
Binance comes in second place by this method. Binance’s ETH/USDT market is 32nd in volume, with almost 1% of Ethereum’s daily trading volume, according to CoinMarketCap.
BINANCE CRUSHES WITH HELP FROM BNB
The next metric ViewBase uses is the value of all ERC-20 tokens combined, which drops Kraken way down the list being that Kraken primarily focuses on fiat/major-cap markets.
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