TokenInsight has released its latest cryptocurrency spot exchange industry annual report. It evaluated the overall trading performance of both centralized and decentralized exchanges all over the world.

The market activity of centralized exchanges was fairly inactive during the Q1 of 2019, according to the report. However, this was followed by a sharp rise during the Q2 and Q3 of the year, before declining again.

With respect to monthly valuation, there was a steady rise and decline observed in the charts. The average daily trading volume was close to $39 billion. The figures were pretty good and it is understood that the profit made by the exchanges was largely dependent on these volumes. However, profitability might have been lower than expected, due to wash trading involved in some of these exchanges.

Per the chart, the trading volume continued to decrease after July. The transaction activity of derivatives exchanges also doubled over a majority of spot exchanges.

Different exchanges have different levels of wash trading volume. The discovery of wash trading has been taken into account by several exchanges, but per the report, the issue is still not resolved.

The total volume acquired by decentralized exchanges (DEX) was slightly above $1.7 billion. This figure only accounted for 0.01% of the entire market, indicating that DEX remained a minor part of the industry.

Decentralized exchanges have many advantages over centralized exchanges. The idea of anonymity and security was properly implemented by these exchanges. However, the lack of significant volume on these exchanges suggested that the DEX industry is far from attaining maturity in the ecosystem.

Featured Image Courtesy of Shutterstock