Report: Crypto Market Is In Fragments With No Clear Dominance

The trading of digital assets is in its initial stages right now. Meanwhile, the regulation of the market’s rules and regulations is being put in place regarding market disintegration. The IPO of Coinbase has been stated as a breaking point for the digital currency market by the famous Fortune magazine. This statement was quite like that of Netscape that hinted at the legitimization of the internet and the trading of currencies on it, and on top of that, they labeled cryptocurrencies as a safe asset which was ground-breaking as the narrative around digital assets was convoluted due to its nature.

Consequently, now the investors can buy stocks from the biggest cryptocurrency trading arena in America. The result is that now, numerous currency geeks see Coinbase as an asset of the future. Considering the magnitude of Coinbase as an exchange, one would think that they would be leading the game from the front, but they are not. The old school methods do not translate in this time, therefore, there has been no dominating force in this field yet.

The details of the cryptocurrency trading can be understood by some golden nuggets; the cryptocurrency market does not have a clear leader as the biggest exchange; therefore, the market is in fragments and not dominated by the top 1% however if there is domination in the market, it could lead to more maturity from the current market as people would have to compete with the best, leaving no loopholes for scams.

In addition to this, the globally leading 5% of the cryptocurrency exchanges only present 41% of the whole global volume of trade, which is fascinating. Similarly, Coinbase- the biggest exchange only handles 2.1% of the volume and stands at the rank 19 globally, indicating that the market is in fragments with no clear dominance, as per a report.

Therefore, a lot of these changes around the globe lead the traders into risky situations. Even the leading exchanges let some bad fish in, which exploit the shoddy money laundering rules that are put in place for such scams. These scams have colluded the legitimacy of these exchanges where people are unsure of whether they should indulge. The persistence of such behavior can result in fewer users over time.