Binance, a leading crypto exchange, continues to dominate the industry in multiple ways, as reported by digital asset analytics firm Kaiko.
In a recent analysis, Kaiko ranked the top ten crypto exchanges based on liquidity, with Binance claiming the top spot, followed by Bybit and Coinbase.
Liquidity is crucial for ensuring optimal trading conditions, such as reduced slippage and lower execution risk. Kaiko’s liquidity score for this quarter’s ranking takes into account various metrics, including volume and market depth.
While Binance leads the pack in liquidity among 43 exchanges, it falls behind Coinbase and Bitstamp in overall rankings when considering governance scores. Despite being the world’s largest exchange, Binance faces stiff competition from its top rivals in different aspects.
Kaiko derives its liquidity ranking from a combination of factors, including trading volume, market depth, coefficient of variation dispersion score, and market quality score. In the first quarter of this year, Binance stood out with the highest trading volume, followed by Upbit in second place.
Although Upbit boasts high volume, it ranks last overall due to transparency issues compared to Binance. Binance emerges as the most liquid exchange with the highest average trading volume over the past three months, closely followed by Upbit.
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