Recently, an analyst institute known as TokenInsight, issued a report on cryptocurrency exchanges in the spot market, in 2020 Q2. The report analysed the number of cryptocurrency transactions, the dynamics of trading tokens, and user trends in the spot market.
This report lists the top platforms in the crypto’s spot market: Binance, OKEx, and ZB.com. The research report also addresses the following key points on the cryptocurrency spot market:
Bitcoin’s Market Value
In the second quarter of 2020, Bitcoin’s market value accounted for over 65% of the overall cryptocurrencies market value for some time. On the other hand, Bitcoin’s turnover decreased to 39.9% of the total spot transaction volume. Bitcoin’s slight fluctuation trend makes it not to attract funds.
As per NASDAQ Composite (IXIC) and Bitcoin analysis, hot money made a switch between both the cryptocurrency market and the US stock market. However, it is still reluctant to get into the cryptocurrency spot trading. The earnings of these centralised spot exchanges got approximated to be $ 472 million in 2020 Q2. In this case, centralised spot exchanges are the profit centre of the cryptocurrency industry.
2020’s Second Quarter Spot Market Trends
This research on cryptocurrency market exchanges in Q2 2020 comprised 295 virtual assets exchanges. This report also compared the entire market’s trading volume in the Q2 2019 to Q2 2020. The findings were that the total spot trading volume of Q2 2020 decreased to $ 5.44 trillion. This is an increase of 25% compared with Q2 2019 and a decrease of 18% compared with Q1 2020. Therefore, this spot market trend indicates that the market has no significant hotspots and imagination space.
Centralised spot exchanges got an approximated revenue of $ 472 million for Q2 2020. However, the estimated income got based on an average fee rate of 0.03% and a 30% true volume level. Regardless of the decline in spot trading volume, centralised spot exchanges are still the industry’s profit centre, with Binance, OKEx and ZB.com leading in bringing the profits.
According to Q2 2020’s spot trading volume ranking by centralised exchanges, the top three market share exchanges are; Binance, OKEx, and ZB.com. ZB.com is a seven-year-old exchange, which as per TokenInsight, might develop significantly in the second half of 2020.
2020’s Second Quarter User Trends
TokenInsight reports that the exchange’s web page’s popularity can roughly tell about professional users’ attitudes towards the exchange. These users include both desktop traders and API traders. Therefore, if an exchange has a higher count of independent visitors (IV), it means that the exchange relatively recognises professional users.
Siteprice.org and TokenInsight confirmed the top 5 exchanges in the market, in terms of IVs and browsing in Q2 2020, are Coinbase Pro, OKEx, and Kraken. The key exchanges users came from the US, Ukraine, Russia, the UK, and China. The five countries are critical locations for exchanges to compete. TokenInsight announced Binance, OKEx, and ZB.com as the leading spot exchanges in the spot market.