Singapore’s SophonEX Report Praises Binance as a Prime Example of a High Performance Exchange
Research recently was done by the Singapore-based SophonEX and the results showed which were the best exchanges for you to use during a bull run or a bear market.
During these specific times, you need liquidity. Thousands of traders enter the market quickly in order to profit from the bull wave or to cut their losses if prices are going down. In these times, then, it is normal for the networks to be considerably more clogged.
This new research used several indicators in order to measure factors that could impact hourly trading volumes, price and see which exchange would have more liquidity when its users needed it the most. Some exchanges, for instance, are only good in “normal” occasions as they are not as robust as some other ones in the market.
Binance basically “won” the research as it was defined as the perfect example of a company that had a very robust crypto exchange infrastructure and that would operate normally even in the most important times.
The Malta-based company had a low 24h-median-price-impact and the stat was only raised during a bull run. This, the research indicated, was a strong indication of robustness and liquidity.
Other two exchanges, Coinbase Pro (GDAX) and Huobi, also had a very low price impact, but not as low as Binance.
SophonEX has also measured the fake volume of each exchange during the analysis. Generally, fake volume does not rise during a bull run, while real volume does. Therefore, it was understood that over half of the volume in Okex, Huobi and HitBTC was actually fake.
Binance and Coinbase Pro were the obvious winners, as none had high fake volumes and both had a lot of liquidity. Huobi still had enough liquidity even discarding the fake volume, though, and Okex was also deemed as a good exchange despite all the fake trading volume. If you want to have liquidity during the upcoming bull run, you better look at these exchanges.