Few crypto exchanges dominate the market: Why this is concerning

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Liquidity in the crypto market has become more concentrated as only eight trading platforms account for 90% of global market depth and volumes.

Due to the SEC lawsuit, Binance’s market depth fell from 42% in 2021 to 30.7% in 2023For an ecosystem which pandered to the libertarian ideals of decentralization, the increasing centralization and dominance of a few crypto entities couldn’t get starker., Director of Research at Kaiko, liquidity in the crypto market has become more concentrated over time, with only eight trading platforms accounting for about 90% of global market depth and trading volumes.

Highly concentrated markets meant that the liquidity was not distributed evenly across exchanges. Such a situation, as perAnother issue with a disproportionate market share was that the collapse of one entity could bring the entire market down, something that was on show with the

 

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