Major crypto exchanges thrive while smaller ones struggle in bear market

Major crypto exchanges thrive while smaller ones struggle in bear market.

Image source: Shutterstock / Wikimedia Commons

Tim Haldorsson

tim.haldorsson@trijo.co

Business is going well for big crypto exchanges like Coinbase and Binance, while smaller exchanges seem to be fighting to survive in the bear market.

Recently, the number of new crypto exchanges has increased sharply, something that Bitcoin News previously has reported. This has created a battle between different exchanges to keep their current customers, while at the same time getting new ones.

The business for large platforms such as American Coinbase has been good. Recently, Trijo News reported that Coinbase, one of the biggest crypto exchanges in the world, was looking at a valuation of $8 billion. Coinbase is also one of the exchanges that are actively hiring new people, which could be a sign that the company is doing well.

Another major player is Binance, which today is one of the world’s biggest crypto exchanges. Binance has said that they are expecting to make $1 billion in profit for 2018. According to Changpeng Zhao, CEO at Binance, the exchange has since its start in June 2017 gained ten million users, Bitcoin News writes.

Heavy competition among crypto exchanges

But things have not been as good for all crypto exchanges. For example, the British crypto exchange Coinfloor has recently said that they intend to dismiss a majority of its 40 employees.

One reason for the dismissals is that there are more players on the market and a harder competition for the crypto exchanges, Financial News reports.

A heavy competition and the fact that more people go to the big crypto exchanges can be something that is good for the crypto market long-term. If more people uses big exchanges, then they can develop a stronger infrastructure for their platforms, CCN writes.

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