The Russian cryptocurrency asset analysis service SCHARD shared statistics, according to which there are fewer and fewer cryptocurrency exchanges in the world every year. In just two months of 2023 they managed to close 15 projects.
A study by the security service for cryptocurrency assets “SHARD” showed that 239 cryptocurrency exchanges have been closed in the world since 2020. Only 183 new players appeared on the market during the same period.
The year 2021 turned out to be the most quantitatively negative for the crypto industry. As noted in the study, 86 projects were closed in 12 months. This is partly due to the fact that in 2021 China introduced a regulatory ban on the use of cryptocurrencies. In particular, it was because of this that the big Bit-Z and C2CX closed.
However, according to SCHARD, most cryptocurrency exchanges announced their closure due to financial difficulties. As an example, take LocalBitcoins, one of the largest P2P sites in the world, which has been operating since 2012.
The biggest crash in the industry was the collapse of the FTX crypto exchange and investment firm, Alameda Research, in 2022. They took out a whole series of bankruptcies for big projects, including BlockFi and AAX. Prior to this, FTX was actively involved in absorbing competitors, which also contributed to the reduction in the total number of cryptocurrency exchanges. In 2022, for example, the company acquired the Japanese Liquid and the Canadian Bitvo.
According to the study authors, the number of cryptocurrency exchanges will only decrease over time. The industry’s tendency to consolidate and expand is associated with a prolonged crypto winter, a period of prolonged market decline.
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