In December 2019, Binance’s estimated trading fee revenue was $18.7 million. According to the study conducted by CryptoDiffer, CZ-led platform was trailing behind Huobi and OKEx in terms of revenue generated via trading fee. Huobi was the first in the race with estimated trading fee income of whopping $51.4 million followed by OKEx on the second position with $35 million. Binance is tied with MXC for the third position with the estimated trading fee income of $18.7 million each. At last, there was Coinbase Pro with a revenue of $17.8 million.
TOP 15 exchanges by estimated trading fees revenues in December
— CryptoDiffer (@CryptoDiffer) January 25, 2020
Top 5 Exchanges In Terms Of Trading Fee Revenue
As per the records of CryptoDiffer, only the five exchanges have more than $15 million worth revenue per month and the revenue of remaining top 10 exchanges lies between $2 million to $8 million. These top five crypto exchanges include Huobi with $51 million revenue, OKEx with $35 million, MXC and Binance with $18.7 million each and Coinbase with $17.8 million revenue per month.
CryptoDiffer noted that it is a rough estimation of revenues made after considering factors such as market making, trading/VIP discounts, wash-trading etc. that have reduced the actual value of revenues. However, the numbers are still striking. The CEO of Binance, Changpeng Zhao, responded to revenue estimation study by CryptoDiffer and claimed that they may not earn the most amount of money, but they always try to do the most with it. He said,
“No worries, we may not earn the most amount of money. But we try to do the most with it.”
Centralized exchanges (CEX) Revenue Dropped By 30%
Earlier, CryptoDiffer noted that they had observed a sharp decline in the volume of CEX (centralized exchanges) continuously from August. The fall started from august onwards after reaching the all-time high in July 2019 because of the price drop in all cryptocurrencies. In the study, CryptoDiffer noted that the estimated revenue of centralized exchanges has dropped by an estimated 30% due to the decline in volumes by the same percentage.