An Analyze of Crypto Exchanges As Crypto Market Cap Hits $400 Billion
The cryptocurrency market has experienced an explosive resurgence this week. Strong performance of major cryptocurrencies boots the total valuation of the cryptocurrency market. Experts are positive about the long-term potential. Cryptocurrency exchange is also an important component of this capital market, it bridge the gap between traders and the technical projects.
According to data from Lian Ta Think Tank, There are more than 1200 kinds of cryptocurrencies in the trading market with a total of 177 crypto exchanges across the world so far. At present, the total market cap rises past $400 USD on a strong wave of positive investor sentiment.
The single day trading volume hits $20 billion USD which shows the market has had a strong month following its sharp decline. The market performance gradually goes back to a standard level equivalently to last December.
Lian Ta Think Tank also provide a trading volume ranking list for 20 top crypto exchanges in the world. On the list, BitMEX ranks first with a daily trading volume of $16,399 million USD while OKEX drops to No.2.
Among these top exchanges, only 6 of them accept fiat currencies, these exchanges are called “fiat gateways”, they have to subject to a lot of regulations and have to meet reporting requirements from government authorities. Regulatory risks make fiat exchanges more difficult to set up than crypto-to-crypto exchanges.
Due to the financial risk issue, China crackdown on ICOs and cryptocurrency exchanges in September 2017. After that, the worldwide crypto exchanges distribution changes. Majority of domestic Chinese token trading platforms were closed down but some exchange giants, includes OKEX and Huobi have set up their business overseas. To these exchanges, although the exchange ban has impact their domestic business, but it also brings the opportunity for them to expand their overseas business which makes these exchanges more competitive.
For example, Huobi.com has changesd its name to Huobi Pro and doubled the number of employees in a short time which shows this exchange has never stopped expanding. Huobi has set up offices in Hongkong, Singapore, South Korean and the USA. The regulatory ban brings Huobi a more diversity user base: they have 3 million users and more than half of them are from overseas.