Of the 160 cryptocurrency exchanges analyzed in a recent report, half control about 85% of the total market share.

According to a CryptoCompare Research report published today, exchanges that the analysis firm ranked as “Top Tier” gained 13% of the market share from October 2020 to January. The market share of these 84 exchanges was around 74% with assets of more than USD 1 trillion.

However, CryptoCompare said that percentage likely rose to 85% in January. Given that the total market capitalization of all cryptocurrencies at the time of publication is $ 1.47 trillion, the market share of these exchanges can now exceed $ 1.2 trillion.

Source: CryptoCompare

The report attributed the surge in market share to retailers and professional crypto traders who turned to seemingly lower risk exchanges as the price of Bitcoin (BTC) rose above $ 20,000 in late December 2020 and above $ 30,000 in January.

However, one of the most important reasons for the increased market share could be that CryptoCompare rated 16 exchanges more than “Top Tier” than in October 2020 – a designation that is intended to measure the risk of an exchange rather than its superiority. The company found that many exchanges now meet the “tightened” requirements of Know Your Customer and Anti-Money Laundring. Many also provide more transparency and improve their general operational status.

According to the results of CryptoCompare, 44% of the 160 analyzed exchanges offer the possibility of “querying complete historical trading data via a public API endpoint”, compared with 37% in July 2020. In addition, the percentage of exchanges was rated “bad or” insufficient KYC systems fell from 44% in July 2020 to 33% in January, according to CipherTrace.

The report specifically mentions Coinbase, Gemini, Bitstamp, Kraken, itBit, and Luno as “least risk exchanges”. Others like Binance, FTX, OKCoin, Huobi Global, and Bitfinex are listed in the next “lower tier” category.