• Kraken was the only crypto trading platform in the U.S. that saw its market depth increase on a year-to-date (YTD) basis.
• Traders gave preference to Kraken after legal action on Coinbase and Binance.
• Kraken outperformed its rivals in terms of trading volume, with supply of Bitcoin on different U.S.-based exchanges increasing steadily on its platform.
Kraken Emerges as Oasis of Growth in 2023
Traders Prefer Kraken After Legal Actions Against Other Exchanges
Kraken was the only crypto trading platform in the US that saw its market depth increase on a year-to-date (YTD) basis, indicating traders giving preference to it after legal action on Coinbase and Binance. It was also the third-largest exchange globally in terms of trading volume, outperforming its rivals due to less regulatory pressure and increased supply of Bitcoin [BTC] on different US-based exchanges.
Market Depth is Crucial Measure for Liquidity
Market depth is an exchange’s ability to absorb relatively large market orders without materially affecting the asset’s price – a measure of liquidity present on the platform. As evident in Graph 1 below, Kraken showed improved numbers compared to other exchanges in this regard, leading to increased confidence among traders worldwide:
European Market Share Increased Significantly
In Europe too, Kraken succeeded in expanding its market share of trading volume from 33% at the beginning of the year to 54% at time of writing – largely at expense of Binance and Coinbase according to Kaiko (see Graph 2). This could be attributed to relative lack regulatory pressure faced by Kraken compared to other big players:
Daily Volume Reached Three Month High
The impact was visible even when looking at spot volumes – hitting three month high according June 22nd according InWara data (shown in Graph 3). This further proved traders‘ trustworthiness towards exchange despite SEC charge related Ethereum [ETH] staking program earlier this year:
Conclusion
Overall, it is clear that traders have been increasingly preferring Kraken over other centralized exchanges due to better liquidity and less regulatory pressure despite SEC charge earlier this year. Its daily volumes reaching three month high is further proof that it has emerged as an oasis amid gloomy state for other CEXs based out of US .