Cryptocurrency still requires several years before achieving widespread public adoption. At present, the majority of market activity is driven by investors and traders seeking to profit from significant price fluctuations.
Recent research reveals, however, that the actual number of active users on major cryptocurrency exchanges is surprisingly small. Among the most active trading platforms, only four boast more than 100,000 daily active users.
These four leading exchanges are Coinbase, Binance, Huobi, and OKEx. A closer look at their user metrics provides valuable insight into current market dynamics and user behavior.
Active User Rankings Among Top Exchanges
According to the latest data, Coinbase leads the group with approximately 422,000 daily active users. Binance follows in second place with around 313,000 daily active users.
OKEx and Huobi both report figures just above the 100,000 threshold, with 105,000 and 101,000 daily active users respectively. This data highlights the concentration of active traders on a limited number of platforms.
The Blockchain Transparency Institute's report, which covers 68 cryptocurrency exchanges, found that the average daily active users across all these platforms was only 27,000. This indicates that a large portion of the trading volume is concentrated within the top few exchanges.
Smaller exchanges report significantly lower activity. Platforms like Bisq, CoinRail, and Kyber Network each have fewer than 1,000 daily active users, with reported numbers as low as 394, 573, and 874 respectively.
User Behavior and Trading Volume Analysis
Coinbase’s position at the top is hardly surprising. The company has established itself as one of the most recognizable brands in the crypto space, particularly among retail investors.
Many new entrants during the last bull market used Coinbase’s iOS application to make their first cryptocurrency purchases. The company ended 2017 with revenues exceeding $1 billion, outperforming expectations by 66%.
Despite its large user base, the trading activity per user on Coinbase is relatively low. Among the four exchanges with over 100,000 users, Coinbase ranks last in trading volume per user, averaging just $189 per user.
In contrast, Binance users average $2,137 in trading volume per person. OKEx and Huobi also see significantly higher activity per user, with averages of $1,972 and $1,723 respectively.
This difference in user behavior has a direct impact on each exchange’s total trading volume. While Coinbase has the most users, it ranks only ninth in terms of 24-hour trading volume, processing around $106 million daily.
Binance, with a smaller user base but much higher activity per user, handles approximately $1.028 billion in trades every 24 hours—nearly ten times the volume of Coinbase.
This disparity underscores the different audiences each exchange serves: Coinbase appeals to retail investors making occasional purchases, while Binance, OKEx, and Huobi cater to more frequent and high-volume traders.
Frequently Asked Questions
What defines an "active user" for a cryptocurrency exchange?
An active user is typically defined as a unique user who logs in and performs at least one trade-related action—such as executing a trade, depositing, or withdrawing funds—within a 24-hour period.
Why does Coinbase have more users but lower trading volume?
Coinbase is popular among retail investors and beginners who may trade less frequently or with smaller amounts. Other platforms attract more experienced traders who execute larger and more frequent transactions.
How reliable are reported exchange user metrics?
While firms like the Blockchain Transparency Institute provide valuable estimates, self-reported data from exchanges should be approached with caution. Independent audits offer the most reliable figures.
Are there other large exchanges not mentioned in this report?
This analysis is based on a specific dataset. Other exchanges may have significant user bases but were not included in this particular study. Always cross-reference multiple sources for a complete picture.
What does this mean for the future of crypto exchange competition?
The concentration of users on a few major platforms suggests that scale, security, and liquidity are key competitive advantages. Newer exchanges must offer significant innovation to compete effectively.
How can users identify exchanges with high liquidity and good reputations?
Research an exchange’s trading volume, security history, regulatory compliance, and user reviews. Reputable exchanges are typically transparent about their operations and have strong community trust.
The cryptocurrency exchange landscape remains highly competitive, with a clear divide between a handful of large platforms and many smaller ones. Understanding user metrics and trading behaviors is essential for both traders and industry observers.
For those looking to deepen their understanding of market dynamics and trading strategies, explore more data-driven insights here. As the industry evolves, these metrics will continue to provide valuable indicators of market trends and platform reliability.