According to a new report published by blockchain analytics firm Nansen on June 14, most reputable cryptocurrency exchanges have adopted user protection funds amid the FTX crash. Together, exchanges like Binance, OKX, and Bitget have more than $2 billion combined in nominal fiat sandboxes. Meanwhile, Huobi’s insurance fund is backed by 20,000 Bitcoin (BTC), while Coinbase is giving away up to £150,000 ($189,140) in insurance to UK customer accounts. The Nansen researchers wrote:
“Proof of reserves should become the minimum standard in the exchange industry, however, as stated above, these are both positive indicators of an exchange but not a guarantee of its suitability.”
Among other items, Binance maintained the number one position in terms of spot and derivatives trading volume. In the spot sector, the exchange had a total market share of 69% and a monthly trading volume of $209.5 billion in May. In the spot markets, Kraken’s trading volume increased the most, rising 14.35% to $18.9 billion in the six months following the FTX crash, compared to the previous six months. Meanwhile, Bitfinex’s trading volume fell even further, dropping 59.5% to $5 billion in the same period.
As for crypto derivatives, all exchanges saw a decline amid the FTX crash except for Bitget, whose average trading volume over six months increased by 4.85% sequentially to $204.1 billion. The researchers write that Bitget, Bybit, and Binance have performed relatively well since the FTX crash. However, Nansen cautioned that the uncertain regulatory environment in the US was weighing on the growth of exchanges:
“SEC chief Gary Gensler has assumed that almost all tokens are securities. This has prevented many exchanges from operating in the US. If the US takes this official stance, it could cause huge problems for e-commerce centers around the world. It would be worth carefully observing the position taken here.”
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