CryptoQuant conducted a study on the liquidity risks of centralized cryptocurrency exchanges, focusing on Binance and OKX.
Binance’s Prominence Among Centralized Exchanges
According to CryptoQuant, the leverage levels of leading centralized exchanges were analyzed to assess how these platforms manage liquidity, default risks, and trading activities. Binance is highlighted as a standout with strong reserves. Despite significant growth in open positions this year, Binance continues to maintain its reserves.
Centralized Exchanges and FTX
CryptoQuant also evaluated exchanges like Gate io, Bybit, and Deribit. The report notes that these platforms feature the highest leverage ratios in the market, with open positions in Bitcoin and Ethereum exceeding current reserves. The analysis highlights the impact of high-leverage trading, which contributed to the collapse of the FTX Derivatives Exchange. FTX is currently in the final stages of its bankruptcy process.
Binance’s Reserves and Market Positions
Binance's reserves allow it to manage unexpected liquidations with a 2.6-fold increase in open interest in Bitcoin. CryptoQuant highlights Binance's strategy to maintain low leverage ratios on the platform, minimizing liquidity risk.
CryptoQuant's analysis confirms that Binance holds significant liquidity reserves in a high-leverage trading environment, distinguishing it among centralized exchanges.
