Crypto Exchanges Kraken, Bybit, and Bitget Gain Ground After FTX Collapse

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Smaller crypto exchanges such as Kraken, Bybit and Bitget are finally getting their time in the spotlight after their more dominant rival FTX collapsed last year, according to the findings of a new report from blockchain analytics firm Nansen. .

In the report, Nansen said the landscape for centralized exchanges (CEX) had changed after the collapse of FTX, with most exchanges hitting their trading volumes as traders became more cautious.

Still, there were some notable exceptions to this, with a number of smaller exchanges seeing their trading volumes increase instead.

Among the exchanges that have seen increased volumes are the UAE-based exchange Bybit and the veteran US-based crypto exchange Kraken, according to the report.

Both exchanges increased their average monthly trading volume from the 6 months before the collapse to the 6 months after the collapse by 7.65% and 14.35%, according to the report.

Meanwhile, Bitget, an exchange particularly popular among Chinese and South Korean crypto traders, was among the exchanges that lost the least volume following the collapse of FTX with a 7.29% drop in volume on the same period.

The strong performance of the three smaller players is remarkable considering that Binance remains – by far – the largest exchange in the world by volume, despite a drop in market share after the latest regulatory crackdown.

Source: Nansen

And while most CEXs had an impact on their trading volumes following the FTX bankruptcy, the Nansen report noted that decentralized exchanges (DEXs) did not suffer the same fate.

Instead, DEX trading volumes remained “relatively stable,” according to the report.

This trend “can be attributed to less confidence in centralized exchanges after the collapse of FTX, in addition to additional regulatory uncertainty,” he added.

Increasingly important transparency

Along with a more level playing field for smaller exchanges, part of the changes seen after FTX is also a renewed focus on transparency in the industry.

In particular, this has been seen with the many so-called proof of reserve statements that major exchanges have issued.

According to Nansen, these types of statements do not necessarily guarantee that an exchange is solvent, but should still be considered a new “minimum standard” that can be expected from crypto exchanges.

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