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Low-quality exchanges are still dominating the crypto industry and trading volumes according to a research made by CryptoCompare which we have today in our latest cryptocurrency news below.

Back on Wednesday, CryptoCompare published a report on the activity of crypto exchanges in July and according to the research, the exchanges with lower ratings accounted for about two-thirds of the trading volume last month and this may be because of the lighter know-your customer KYC verification procedures if they are existent at all. The rating is based on the CryptoCompare proprietary exchange benchmark grading which rates platforms based on their jurisdictions, data provision quality, trade surveillance, regulatory compliance and market quality among others. This way, exchanges get a double-A for the best score and F for the worst.

In July, D and E rated providers were making up to 64% of the total trading volume combined and these rates with AA and A accounted for combined up to 25%. Thus, more crypto traders choose platforms such as Gateio, Ethfinex, HitBTC, BitMax, IDEX, and CoinEX over major exchanges such as Poloniex and Bitstamp. To clarify CryptoCompare lists more D and E rated exchanges AA and A ones which might also influence the volume distribution figure. The good news is that the trends have been changing over the last three months and high-quality exchanges saw more activity in July than June. The highest-rated exchanges saw an increase of 28.7% in trading volume while the D rated ones saw a decline by 19%. The major surge in trading volume for the month was recorded by C rated exchanges. This category includes platforms like Luno, Kucoin, Bibox, and Coinfloor.

The trusted exchanges compared to the low-quality exchanges saw their aggregate their volume expand by 4.4% and on the other side the volume from the untrusted crypto exchanges only increased up to 0.7% though the latter category dominates the market. As noted in the reports in the altcoin news previously, the untrusted crypto exchange LBank had the highest average trade sizes and also the highest increase in trading volume compared to June. The average trade of the exchange was 3.7 Bitcoin while the trading volume in July was $45 billion.