London, 6 December 2018: CryptoCompare, the global cryptocurrency market data provider, today published its monthly Exchange Review for November 2018, offering institutional and retail investors insights into the cryptocurrency exchange industry as well as any changes to constituent exchanges that make up CryptoCompare’s CCCAGG price indices.
As for previous editions, the monthly review includes news highlights; a market segmentation and overview; exchange trade data; information on Bitcoin to Fiat volumes; country and web traffic analysis.
Key findings from the November review include:
- Spot volumes continue to represent the majority (75%) of total market volumes when compared to those of futures volumes (25%)
- Exchanges with fees represented just under 89% of daily spot volume compared to those that implement transaction-fee mining (8%) and no-fee models (2%)
- Exchanges that offer fiat to crypto pairs constituted a third of daily spot volumes, compared to those that offer only crypto to crypto pairs
- Bithumb overtook Binance as the largest spot exchange with average daily volumes totaling 1.24 billion USD. Binance (641 million USD) and ZB (560 million USD) traded the second and third highest volumes respectively.
- Bitcoin trading to Korean Won (KRW) dominated BTC to fiat spot volumes last month, representing 50% of all volumes on average. This follows from Korean exchange Bithumb’s trading volumes.
- South Korean-registered exchanges produced the highest total daily volumes (1.4 billion USD) overtaking Maltese-registered exchanges (1.2 billion USD), while the highest quantity of top exchanges (relatively high volume) are registered legally in Hong Kong (10) and Singapore (11).
- Bithumb, ZB, CoinBene, EXX and FCoin attract significantly lower daily visitors than similarly-sized exchanges. Bithumb, Coinbene and CoinTiger volumes increased significantly since last month, while their daily visitors decreased.
- Bitfinex, HitBTC, Kraken are among those that have the most stable markets assessed by cumulative depth down, while Neraex, Exrates and Cryptagio have the thinnest markets. These exchanges appear significantly less stable given their relatively low average order book depth values over the specified period of analysis. Bitforex and Coinbene have both thin markets combined with relatively high volumes.
- In November, two new exchanges (Catex, Exenium) were added to CryptoCompare. Out of the pool of new exchanges we have monitored since October, only Coinmate met the minimum requirements and will subsequently be added to the CCCAGG. Following our November exchange review, Bithumb will be removed from CCCAGG calculations.
Charles Hayter, CEO of CryptoCompare, said:
“We have seen great interest in our monthly reports and are constantly adding new features to our regular analysis. Real-time, accurate cryptocurrency market data remains crucial to our universe of retail and institutional investors, as we see more assets migrating to the digital format due to its immediacy and friction-less global nature. Our report is designed to safeguard data accuracy and integrity, to ensure consistency and confidence in the market”
The Methodology: CryptoCompare’s Monthly Exchange Review evaluates the consistency and quality of exchange data, which is incorporated into CryptoCompare’s real-time Aggregate Index Methodology (the CCCAGG), used to calculate the best price estimation of cryptocurrency pairs traded across global exchanges. It aggregates transactional data from more than 70 exchanges using a 24-hour volume weighted average for every cryptocurrency pair. Constituent CCCAGG exchanges are reviewed and amended each month to ensure that the most representative and reliable market data is used in CCCAGG pair pricing calculations.
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CryptoCompare is the global cryptocurrency market data aggregator, providing retail and institutional investors with real-time, high-quality and reliable market and pricing data on 5,000+ coins and 200,000+ currency pairs globally, bridging the gap between the crypto asset and traditional financial markets.
By aggregating and analysing tick data from globally recognised exchanges and seamlessly integrating different datasets in the cryptocurrency price, CryptoCompare provides a comprehensive overview of the market and a fundamental value matrix. At a granular level, CryptoCompare produces cryptocurrency trade data, order book data, block explorer data and social data, taxonomy reports and a suite of cryptocurrency indices.
Acting as a gatekeeper for reliable, accurate and clean data, that can be trusted as the basis for investment decisions, CryptoCompare adheres to rigorous standards to safeguard data integrity, normalising global data sources to ensure consistency and confidence in the market.
Notes to editors:
Data methodology: how do we assess exchange data?
We assess exchanges on the basis of spot 24-hour volume and pricing data. The current process operates as follows: for each exchange, the 24-hour volume and price of every live trading pair is recorded. Each pair volume is compared to the total market volume for that specific pair and assigned a market share ranking. Pricing for each pair is then compared to that of the CCCAGG pair, and a percentage price difference is calculated. Finally, a 24-hour volume weighted % price difference per pair is calculated to produce a figure for how close the overall exchange pricing differences are to that of the CCCAGG.
As a general guideline, CryptoCompare assumes that exchanges with an overall percentage pricing difference of under 10% is within acceptable boundaries. The reasons for pricing differences across exchanges may be related to a number of factors that include exchange fees, jurisdiction, tax considerations among a series of other factors. It is however, the first indicator of acceptability within the CCCAGG exchange list.