Most Popular Centralized Exchange For Algorand Wallets

    Introduction

    Centralized Exchanges are established platforms where users can trade crypto and exchange their cryptocurrencies. CEX, unlike DEX, is run by centralized organizations that make it less favorable for those who are interested in decentralized platforms and trustless transactions. Yet, thanks to high user experience and the possibility of fiat-cryptocurrency trading they are popular and attract a high trading volume and high liquidity.

    This dashboard focuses on ALGO and investigates the popularity of centralized exchanges among Algorand wallets. For this purpose, the volume of inflow and outflow of CEXes since January 1st, 2021 will be presented.

    Loading...
    Loading...
    Loading...

    Results

    First we will provide a descriptive overview of the flow of Algo between Algo wallets and centralized exchanges trying to identify important CEXes and unusual dates. Then, we will dive deeper into the inflow and outflow of top CEXes with a focus on unusual dates.

    Descriptives

    The graphs below show how the daily volume of ALGO moved to and from centralized exchanges has been changed over time.

    We can see some specific dates that the volume of inflow and/or outflow experienced unusual spikes.

    Unusual dates: September 7_8, 2021 (in-out flow), November 16_18, 2021 (in-out flow), and December 26, 2021 (outflow).

    Loading...
    Loading...
    Loading...

    The graph below shows the dominance of inflow or outflow. Overall, the daily volume of inflow and outflow are similar. However, there are some exceptions.

    Unusual dates: July 19, 2021 (outflow), September 4, 2021 (inflow),September 22, 2021 (outflow), December 8th, 2021 (outflow), and December 26th, 2021 (outflow).

    Now, we break down the data into centralized exchanges.

    The barchart below shows the total volume of ALGO transferred from and to different CEXes.

    As can be seen Binance and Coinbase are top popular CEXes among Algorand wallets.

    The donut charts below shows the percentage of inflow and outflow algo by centralized exchanges.

    Almost 96% of total volume transferred to and from Algorand wallets is moved from or to top 10 CEXes listed below.

    Analysis

    Based on the descriptives above we will focus on the top 10 centralized exchanges. Also we will consider the above-mentioned dates.

    Graph below shows how the monthly dominance (relative popularity) of CEXes have been changed over time. As can be seen binance dominance is decreasing. However, Okex has recently experienced a growth in terms of transactions ALGO with Algorand wallets. Group6 (unknown exchange to me) has an unusual performance in January 2022.

    Loading...
    Loading...
    Loading...
    Loading...

    The graph below shows the weekly transactions to CEXs. The dominance of group6 in the second half of January 2022 is clear from the graph.

    In daily chart we can see some unusual days. October 2nd, December 22, January 24

    Conclusion

    • The inflow and outflow of each CEX is almost the same in overall.

    • The inflow and outflow of overall CEXes is the same but there are some exceptions.

    • Binance is the most popular CEX. However, its (relative) popularity is decreasing.

    Unusual dates

    December 20-26

    In the first graph above we saw that on December 24 and December 26 we have spikes in ALGO transactions with CEXes (inflow and outflow respectively). Also, we saw that the dominance of Binance felled down on December 22nd.

    We can see that on December 22nd the transactions with Coinbase was increased and on 24th with Binance. There is no unusual day on 26th in terms of popularity of CEXes.

    Loading...
    Loading...
    Loading...

    January 24-30, 2022

    This week is not an unusual day in terms of the volume moved in or out from or to CEXes overall. However, within sexes we can see group6 became popular, and also okex.

    September 27- October 3, 2021

    This week, we can see an increase in dominance of Coinbase and Okex.