Binance, a leading cryptocurrency exchange, continues to dominate the industry in various aspects, as reported by the digital asset analytics firm Kaiko.

In a recent analysis, Kaiko ranked the top ten crypto exchanges based on liquidity, with Binance securing the top spot, followed by Bybit and Coinbase. Liquidity plays a crucial role in providing traders with favorable conditions, such as reduced slippage and lower execution risk. Kaiko developed a liquidity score for this quarter’s exchange ranking, considering metrics like volume and market depth.

Despite Binance’s strong position as the world’s largest exchange in terms of liquidity, it ranks third when additional factors like governance scores are taken into account, trailing behind Coinbase and Bitstamp.

Kaiko determines its liquidity ranking by considering various factors such as trading volume, share of volume, market depth, dispersion score, and market quality score. In the first quarter of this year, Binance led significantly in trading volume, with Upbit coming in second. However, Upbit ranks last overall due to lower transparency compared to Binance.

Examining the top 10 exchanges for the quarter, Binance emerges as the most liquid exchange with the highest average trading volume over the three months analyzed. Interestingly, Upbit follows Binance in trading volume but ranks lower due to a lower business score, with only one identified member in its executive team.

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