CryptoCompare Exchange Benchmark Launches to Provide Reliable Data About the Crypto Market
- CryptoCompare launches new benchmark rankings to provide better data about exchanges
- This is in order to improve the current information available in the market about exchanges
The cryptocurrency data provider CryptoCompare has just launched an Exchange Benchmark product in which they rank more than 100 different cryptocurrency spot exchanges from different countries.
The information was unveiled by the company in a press release shared with different media outlets.
CryptoCompare Launches New Benchmark Ratings For Exchanges
CryptoCompare explained that the new product has been developed in order to give a solution to the current issues that exchanges are experiencing regarding their trading volumes.
There have been several reports regarding the current situation of these exchanges. According to the crypto index fund provider, Bitwise Asset Management, 95% of the volume registered by unregulated exchanges seems to be fake or “non-economic” in nature.
The press release explains:
“The problem has been getting worse with lower quality exchanges (ranked C-F) increasing market share by 30% in the last 12 months, demonstrating the need for a ranking methodology that does not rely on aggregate volumes.”
The data provider decided to take a different approach to how they measure trading volumes for exchanges. They have designed their own Exchange Benchmark by deploying a qualitative (due diligence) and quantitative approach.
Most “Trusted” Exchanges, According to CryptoCompare
This is more and more accurate than the previous records provided by other websites. Some of the new components to build this ranking include legal and regulatory needs, geography, investment and the reputation of the team behind the firm.
At the same time, CryptoCompare revealed that the most trusted exchanges in the market are Coinbase, poloniex, Bitstamp, bitFlyer, Liquid, itBit, Kraken, Binance, Gemini and finally Bithumb. The analysis made by Bitwise showed that there were several exchanges with a larger trading volume due to wash trading activities that were performed by the exchanges themselves or other parties.
Moreover, the company has also revealed a new partnership with Nasdaq in which it will be delivering a new product that will provide price information to institutional investors. It is worth mentioning that BitMEX has also decided to work with CryptoCompare to build a real-time crypto futures dataset.