CryptoCompare Exchange Benchmark Launches to Provide Reliable Data About the Crypto Market

CryptoCompare announced it has released a new Exchange Benchmark product in order to provide more accurate information about cryptocurrency exchanges’ trading volume. A few months ago, Bitwise Asset Management released a report informing that 95% of the crypto trading platforms had fake volumes.

  • 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.

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Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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