Kraken, Bybit, and Bitget gain ground after FTX collapse according to Nansen Report.
According to a new report from blockchain analytics firm Nansen, smaller cryptocurrency exchanges such as Kraken, Bybit, and Bitget are finally receiving attention after their larger competitor FTX collapsed last year.
Nansen’s report states that the landscape for centralized exchanges (CEXs) has changed since the FTX collapse, with most exchanges experiencing a decrease in their trading volumes as traders became more cautious.
However, there were a few exceptions to this trend, with some smaller exchanges experiencing an increase in trading volumes. Bybit, a UAE-based exchange, and Kraken, a veteran US-based crypto exchange, were among the exchanges that saw a rise in trading volumes.
The report found that these two exchanges increased their average monthly trading volume by 7.65% and 14.35%, respectively, in the six months following the FTX collapse compared to the six months prior.
- Meta’s ‘Voicebox’ AI is a text-to-speech tool tha...
- Mark Cuban criticizes SEC for hurting crypto startups.
- Liquidators of Three Arrows Capital seek contempt sanctions against...
Meanwhile, Bitget, an exchange popular among Chinese and South Korean traders, experienced the least decrease in trading volume, with a 7.29% fall over the same period.
Despite these strong performances by smaller players, Binance remains the largest exchange by volume, although it has seen a decline in market share following the latest regulatory crackdown.
While most CEXs experienced a decrease in trading volume after the FTX bankruptcy, the Nansen report noted that decentralized exchanges (DEXs) did not suffer the same fate. DEX trading volumes have remained “relatively stable,” the report said, which may be due to decreased trust in centralized exchanges after FTX’s collapse and increased regulatory uncertainty.
Transparency becoming more important
In addition to a more level playing field for smaller exchanges, post-FTX changes include a renewed focus on transparency in the industry. Major exchanges have published so-called proof-of-reserve statements to demonstrate their solvency, although Nansen notes that these statements do not necessarily guarantee solvency but should still be considered a new “minimum standard” for crypto exchanges.