In short, trading volumes in centralized cryptocurrency exchanges skyrocketed last month.
Renowned crypto data provider CryptoCompare issued its April 2019 Exchange Review report on May 20. In short, trading volumes in centralized cryptocurrency exchanges skyrocketed last month.
More precisely, the monthly volumes in April increased by a staggering 85% compared to previous months. Fiat-to-crypto platforms enjoyed the spotlight, with Bithumb leading the pack. Though the South Korean exchange saw a 47% drop in its trading volumes, it still performed better than the rest, accounting for $17 billion in trades.
Second and third come Upbit and Bitfinex with $8.7 billion and $6.7 respectively. The CryptoCompare report reveals that while other centralized exchanges such as Coinsbit, Bitstamp, Kraken, and Coinbase also enjoyed higher trading volumes, Liquid was in the red.
When it comes to crypto-to-crypto platforms, the statistics were quite similar – the overall increase was 57%. The largest exchange by trading volume was China-based FCoin ($37.1 billion), followed by OKEx ($35.1 billion), and ZB ($32.4 billion).
Needless to say, decentralized exchanges (DEX) also experienced an increase in trading volumes, though the numbers were much lower compared to their centralized counterparts. The race was led by Ethermium with a $194 million, even though the exchange faced a 42% drop. On second place comes WavesDEX with $32.5 million, while IDEX is third with $31.4 million.
Notably, CryptoCompare details that decentralized exchanges account for a mere 0.068% of the total trading volumes worldwide.
“When it comes to zero-fee exchanges, traders are able to trade freely without fees regardless of how many trades are made; hence, volumes might become inflated. In a similar fashion, transaction fee mining exchanges rebate 100% of transaction fees in the form of their own exchange tokens. […] For this reason, transaction-fee miningtrading data is excluded from CCCAGG pricing calculations in the current policy,” the report reads.
We should note, however, that according to TokenInsight’s 2018 Cryptocurrency Exchange Annual Report, decentralized exchanges account for at least 19% of the global trading volumes. Nevertheless, their volumes make up for only 1% of trades settled on centralized exchanges. CoinMarketCap announced that it will exclude exchanges from its calculations should they fail to deliver mandatory data by June.