The world of cryptocurrency exchanges, often shrouded in volatility and competition, recently witnessed a different dynamic change, especially when a Kraken took the lead in the US altcoin trading space.
The latest data REFLECT Kraken, the California-based crypto exchange, is currently dominating its rivals, especially Coinbase, in the altcoin market.
Dominating the Altcoin Trading Landscape
Data analytics from crypto research firm Kaiko highlights Kraken’s emergence as the leading US crypto exchange for altcoin trading. With significant changes in market depth percentages and a remarkable increase in market share, Kraken appears to be carving a place for itself in a volatile industry.
📈🤔In July, Kraken emerged as the most liquid platform for US alts.
👉 Its acquisition is almost half the market depth for the top 10 alts. pic.twitter.com/2fumt7yi9a
— Dessislava Ianeva (@DessislavaIane2) August 9, 2023
Market depth is an important metric for crypto exchanges because it represents an exchange’s ability to handle large numbers of buy or sell orders without significant price changes. And according to recent data from Kaiko, Kraken now commands almost 47% of the market depth for the top 10 altcoins.
This dominance, especially after last year’s price drop and FTX’s unfortunate collapse, highlights the stability that Kraken brings to the altcoin trading sector.
As the entire crypto trading industry grapples with declining trading volumes, Kraken has managed to hold its own. A steady increase in its market share can be seen as it jumped from 8.3% in August 2022 to 21.1% in July, according to data from The Block’s dashboard.
Behind the Kraken Ascendancy
Kraken reportedly credits this upward trajectory to some specific improvements in its offerings. In particular, the introduction of Kraken Pro, their advanced trading platform launched in December, is believed to be an important step.
A spokesperson for the crypto exchange detailed the exchange’s recent performance, pointing out that their “share of total volumes reached an 18-month high.”
In addition, there was a significant increase in their share in the EUR spot markets, which increased from 35% to 53%, and the AUD spot markets saw exponential growth, increasing sixfold in the last year.
Despite the commendable progress, it is important to note that Kraken, like many others in the industry, is feeling the effects of an industry-wide decline in trading volumes. Their monthly trading volume saw a decline from a high of $28.07 billion in March to $13.6 billion last month.
Featured image from Unsplash, Chart from TradingView