Top 5 Crypto exchange based on Liquidity and Trading Volume

HEht...Y33V

12 Jan 2024

While crypto exchanges need high trading volumes to keep their doors open, they also need to maintain high liquidity to attract professional traders with higher trading volumes.
For a crypto trader, exchange volume is equally essential; higher trading volume means your orders will be filled relatively faster, with better rates and maybe lower fees.
Further, it also means that the prices will likely be as near the market equilibrium as possible.

Data Around Spot, Futures, and Derivatives Trading Volume

Even though present market conditions are more suitable for long-term hodlers, some exchanges still see a rise in their monthly trading volumes.
For example, according to the data from TokenInsight, the MEXC Global crypto exchange has observed a steep rise in its spot and derivatives trading volume during the past week. Signaling a movement of traders with significant capital moving to MEXC and hence an increase in liquidity.
Further, the chart below from CryptoRank represents the spot trading volumes on major crypto exchanges during the last seven days (at the time of writing). Although, Binance captures most of the spot trading volume on the market, MEXC, Coinbase, OKX, and FTX manage to be in the top 5.

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Furthermore, the trading volume at MEXC Global is almost twice that available at FTX or others.

Reported VS Adjusted Spot Volumes On Major Crypto Exchanges

Since higher trading volume corresponds to higher liquidity at a crypto exchange, which correlates with better available market rates and faster settlements, let’s look at the top 5 crypto exchanges with the highest spot and derivatives trading volume.

1. Binance

Binance is the largest crypto exchange in terms of worldwide users and trading volume. Further, the exchange boasts over $73 Billion in weekly trading volume.
According to Nomics, Binance accounts for 27% of total crypto volume and has executed more than 28.5 billion trades in the last day, accounting for 100% of trades.
Binance caters to its user with over 1448 trading pairs, with BTC/USDT and ETH/USDT being the most popular.
Furthermore, according to data from Nomics, even though, Binance is the biggest centralized crypto exchange in terms of trading volume, it has been going through a decline throughout October.

Also read: Best FREE 16 Crypto Trading Bots

2. MEXC Global

With over 10 million users worldwide, MEXC is a market-leading, user-friendly cryptocurrency exchange that offers one-stop services for trading spots, leveraged exchange-traded funds (ETFs), perpetual futures, NFT Index, and many other products.
Moreover, given the high popularity of the futures market since the previous bull run, it is evident that a crypto exchange with better derivatives trading volume would be a preferable choice for professional traders.
According to the data from TokenInsight, the derivatives trading volume at MEXC went up by almost 3x during the last four days. Further, at MEXC, out of the total trading volume, approximately 18% comes from the spot market, and the rest is from the futures or the derivatives market.
The ETH-USDT and BTC-USDT pairs at MEXC, when added, alone boast a volume of over $1.2 Billion, which are also among the most popular trading pairs.

3. Coinbase

Users can easily buy, sell, exchange, and store cryptocurrencies on this US-based cryptocurrency trading and investment platform. The platform supports fundamental transactions, digital wallet withdrawals, and PayPal withdrawals and is user-friendly for beginners. In addition, Coinbase Pro offers more expert trade execution and lower fees for more experienced traders.
The volume on Coinbase over the last 24 hours is $1.43B. They have 540 markets, with BTC/USD, ETH/USD, and USDT/USD is the most popular markets (trading pairs). According to data from Nomics, Coinbase accounts for 1% of the total trading volume in the market, with 2,759,640 trades executed on the last day.
Coinbase has over 541 Pairs in the Spot market and does around an average of $1.3 bn trading volume daily, which is 35% market share in spot trading volume globally.

4. FTX

FTX is a crypto exchange “by traders, for traders” with over a million registered users. Further, it is one of the fastest-growing crypto exchanges offering a ton of services to its users.
The platform offers over 703 markets, with BTC/USD, ETH/USD, and BTC/USD is the most traded pairs.
Further, according to data from TokenInsight, FTX boasts over $10 Billion in total trading volume, out of which the spot market contributes 15% and the remaining is from the derivatives market.

5. Kraken

Kraken, a centralized cryptocurrency exchange with over 622 markets, including USDT/EUR, USDT/USD, and BTC/USD, is among the most famous American exchanges.
On 21st October, the exchange depicted its volume as over $36 million. BTC-USDT allocates 3.1% of the market share for the spot pair with a volume of more than 8 million per TokenInsight.
For the past 24 hours, the average volume and spot volume have stood at 0.49 billion.
Kraken’s 24-hour volume is estimated to be $561 million, a change of 49.18% in the last 24 hours. USDT/EUR is the most active trading pair, with a 24h volume of more than $118 million.

Conclusion

Binance offers the maximum number of services in the market while also being the world’s biggest crypto exchange in terms of the trading volume. However, it is also quite overwhelming for new traders; therefore, going with an alternative would be the best choice.
MEXC Global can be quoted as the best alternative to Binance as it is just second in line regarding the total trading volume of both spot and derivatives. Further, the MEXC exchange doesn’t lack any essential features centralized crypto exchanges offer.