Two Exchanges to Rule Them All?
Updated: Mar 14, 2019
As trading volume recovers from its yearly low, Binance and Liquid are stealing volume from their competitors.
As mentioned in our other research articles, trading volume is the lifeblood of an exchange. Beyond the obvious fees that come from volume, higher volume also draws in more traders - creating natural consolidation onto just a few platforms. Based on data (painstakingly) collected over the last year, we believe Binance and Liquid will continue to separate themselves from their competitors.
tl;dr: We believe that Binance and Liquid will continue to outperform and we reiterate our buy recommendation on Liquid's utility token (QASH) up to $0.67 USD as of March 13th, 2019.
Over the last year, only two exchanges have gained market share
In the graph below, we show the 30 day moving average share of volume from a subset of reputable exchanges over the past year. Interestingly, only Binance and Liquid have gained market share, though this corroborates our perspective from our prior article.
Note 1: As most 'top' exchanges fake volume, we have focused our analysis on a set of reputable exchanges that our internal analysis leads us to believe are trustworthy (either due to explicit regulation or reputational risk).
Note 2: Bitfinex's trade engine allows wash trading; we have not adjusted its volume.
Trading volume has fallen, but is recovering from recent lows
Below is the same graph as above, but with exchange trading volume (30 day moving average) overlaid on the secondary axis.
*Numbers may not foot due to rounding
Both Binance and Liquid have made considerable moves during this bear market. We will continue to closely watch exchange trading volume and market share.
New to Liquid? Use our referral link: (you get utility tokens, and it helps us continue providing free research): https://www.liquid.com?affiliate=KtSclF9h148477
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THIS REPORT IS NOT FINANCIAL ADVICE. AUTHORS MAY OWN POSITIONS IN UNDERLYING ASSETS DISCUSSED. PLEASE DO YOUR OWN RESEARCH.