The number of active cryptocurrency exchanges has been steadily decreasing since July 2020, Chainalysis has learned. According to a new report, the total number of active cryptocurrency trading platforms decreased to 672 in August 2021 from 845 in August 2020.
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The New York-based blockchain forensic firm says bigger cryptocurrency businesses continue growing despite the downtrend. These giants are surviving at a higher rate than smaller ones, the firm noted.
"Across all exchange categories, largesized exchanges were the only group to grow between 2019 and the present, with the sole exception of small P2P platforms, which grew just 9% in value received," the report says.
However, it seems that centralized exchanges are starting to feel pressure as trading volumes on decentralized platforms rose by 550% this year. In August alone, decentralized exchanges registered over 5,1 million transactions with an average transaction over $26,500. Centralized exchanges, on the contrary, had approximately 14,7 million transactions with $12,431 in mean transaction size.
In the meantime, the market is preparing for tough times as a group of officials from 32 governments reached a consensus to continue international scrutiny of cryptocurrencies to disrupt the ransomware business model earlier this year. The officials noted that standards developed by the Financial Action Task Force are implemented on the global scale unequally.
The group also recognized the challenges some jurisdictions face in developing frameworks and investigative capabilities to address the constantly evolving and highly distributed business operations involving cryptocurrencies.
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