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The new ranking reveals the true king of cryptographic exchanges

There are several criteria used to evaluate the trade in cryptocurrency; these range from platform security, liquidity, customer support, volume of exchanges and, of course, the number of users. While it is arguable which of these is the best index, a notable blockchain research company has published a cryptographic exchange ranking based primarily on its user base.

Blockchain Transparency Institute, this week, published its global rankings of cryptocurrency trading and, as expected, featured some of the well-known cryptographic exchanges.

Binance named the largest exchange of cryptocurrencies

The first place was, however, reserved for the cryptic exchange of Binance because it was considered the largest trading platform. The exchange outperformed the list with an average of around 160,000 daily users and a 24-hour trading volume of just over $ 1 billion.

Binance has beaten all other exchanges not only in the number of daily users and in the volume of exchanges, but also in other areas, including the number of mobile users, total active users and the relationship between volume and visitor.

Coming in second place, OKEx crypto exchange managed 105.609 total active users and a 24 hour trading volume of approximately $ 694 million. Other exchanges that complete the top 10 on the global ranking of Blockchain Transparency Institute are Huobi, Bitfinex, Bithumb, HitBTC, Upbit, Kraken, Coinbase and BitStamp.

The influence of CoinMarketCap

Compared to their positions on Coinmarketcap.com, only the first three (ie Binance, OKEx and Huobi) maintained their positions on both charts. CoinMarketCap has become the go-to website for statistical data on cryptocurrency and cryptographic exchanges. Previous research by the Blockchain Transparency Institute showed that many exchanges received about 80% and 90% of their referral web traffic from the site. This says the researchers led the exchanges to use washing operations to increase trading volumes and rankings on the site.

Exploit Token Emitter Tokens

Another result of CoinMarketCap's influence is that these exchanges exploit projects whose tokens still have low capitalization, charging them between 5 BTCs and 60 BTCs to get them listed on their stock exchanges. It is a common opinion that the inclusion in one of the main trading platforms, ranked among the first in CoinMarketCap, greatly enhances the recognition of the token. These projects that are desperate to get recognition usually follow the agreement to benefit from the exchange traffic. The report explains:

"… this also involves supplying the exchange with a large amount of tokens that are then used to massively inflate the volume numbers on CMC [CoinMarketCap], tempting in potential traders from other exchanges with a much lower, but real volume ".

As reported earlier by Smartereum, an analysis conducted by Coinmetrics in July showed that more than half of the transactions on exchanges of cryptocurrencies had no economic value. The data analysis provider noted that manipulated operations, coin mixers and mining disbursements contributed to inflated business volumes. Another analysis of cryptographic exchange books by Sylvain Ribes claims to discover about 3 billion dollars of falsified cryptocurrency volumes, accusing OKEx of falsifying more than 90% of its volume.

Fight against fake trade volumes

Cryptographic operators are facing the challenge of false transaction volumes. Binance appears to be in the front row as he announced that he would channel all receipts for the token to charity. In this way, it removes the main motivation for the washing operations.

For its part, CoinMarketCap has also made efforts to improve the accuracy of data on the volume of trade on its platform. As reported by Smartereum, the cryptographic data site has introduced an appropriate commercial volume algorithm to filter for false commercial volumes. This has accompanied the changes to the appearance of the website, its API and other new features.

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