Measuring exchange concentration in crypto: the share of volume on three platforms

How do analysts define exchange concentration across crypto venues?

Exchange concentration describes how much of the trading in a market passes through a few venues. When a small group of platforms handles most of the volume, the market depends on their systems, their rules, and their solvency. Measuring this dependence turns a vague worry into a number you can track.

The idea comes from competition analysis, where analysts measure the share held by the largest firms. Applied to crypto, it answers a practical question: if one platform stopped trading tomorrow, how much of the market’s liquidity would go with it? The answer shapes how far a shock can spread.

What share of crypto volume sits on three platforms?

According to the EQOS Asia crypto study (2026), three platforms, Binance, Coinbase and Kraken, handle 70% of volume. The study uses this figure in its reading of the coherence dimension, which scores 0.380 because the market claims decentralization while trading concentrates in a few places.

The finding has a plain meaning for decision makers. A market built on open networks still routes most of its trading through three companies. The EQOS Asia crypto study (2026) calls the decentralization promise partly a marketing myth, and the figure gives that statement a measurable basis.

How do you calculate crypto exchange concentration from 24-hour volume?

Take the 24-hour trading volume of each venue from a data aggregator, add the volume of the 3 largest, and divide by the total. Repeat every week and plot the series. The top-3 share is the simplest concentration measure, and it expresses the market in the same terms as the 70% figure.

Add a second measure for depth. The Herfindahl index squares each venue’s share and adds the results, so a market dominated by one venue scores higher than one split evenly among several. Use both measures together: the top-3 share is easy to explain, and the index responds to changes in the ranking inside the group.

Which data gaps affect crypto exchange volume figures?

Reported volume can include trades that carry no economic meaning, such as a party trading with itself, and aggregators apply different filters. Compare at least 2 data sources and prefer venues that publish audited or regulated figures. Keep a note on which sources you used for each reading.

Volume also splits between spot and derivatives markets, and concentration can differ in each. Define the market before you measure: spot only, derivatives only, or both. A consistent definition keeps weekly readings comparable and avoids shifts that come from changing the question.

Why does exchange concentration raise crypto crash risk?

Concentration links the fate of many holders to a few operations. A technical outage, a hack, a freeze of withdrawals, or a failure of the operator can affect most of the market at once. The FTX collapse of November 2022 wiped out $8 billion of customer funds (EQOS Asia crypto study, 2026), which shows what a single platform failure can cost.

The risk spreads through liquidity as well. When a large venue pauses trading, prices on other venues move without the usual depth, and spreads widen. A market with many mid-sized venues absorbs such a pause more easily than one where a few platforms carry most of the flow.

What does the study recommend about crypto venues and reserves?

The EQOS Asia crypto study (2026) recommends requiring proof of reserves: every exchange or custodian publishes audited reserves, and a refusal counts as a risk signal. The study treats this as the minimum standard after FTX, and it ties the measure to the integrity dimension, which scores 0.350.

Applied to concentration, the rule has two parts. Check which venues hold your assets, and check how much of the market’s volume those venues carry. The study supports the same habit in its first recommendation: measure direct and indirect exposure, including the effect of a 50% fall in Bitcoin.

How does concentration compare with the other crypto crash signals?

Concentration moves slowly. Funding rates change hourly, flows change daily, and concentration shifts over months as venues gain or lose share. That makes it a structural signal: it shows the shape of the market, and the faster signals show the pressure on that shape.

Together they answer two questions. Where would a shock spread? Concentration gives the map. How hard is the market pushed today? The faster signals give the pressure. A concentrated market under high pressure is the combination that deserves a review of exposure.

How can you track crypto exchange concentration each month?

Each month, record the top-3 share, the Herfindahl index, and the share of the largest venue, using the same sources. Label the month calm when the shares are stable, warm when the top-3 share rises by several points, and hot when it rises alongside a venue incident. Keep the sources and definitions in your notes.

The Λ simulator on the EQOS Asia site lets teams in Singapore, ASEAN, and Hong Kong add the concentration reading to a wider score, and the EQOS Asia pricing page describes the formal diagnostic. This page is general information, not investment advice, and it reflects data as of October 2026.

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About the author

Stéphane Jambu

President, EQOS Forecast Asia

Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile