This prompts the question, are listings an indicator of a major bottleneck in the crypto exchange industry?
So we decided to take a closer look at what is happening with the other 100+ exchanges that now exist.
Here's a graph of the number of unique listings across the top exchanges as ranked by listing count.
And here's the trajectory of the listing counts over time for the top 13:
Without taking into account quality, liquidity, or general trustworthiness, at first glance the "large listing" exchanges seem to open up markets for new instruments on pace.
However, it also appears that the number of listings tends to plateau on a given exchange.
If blockchain-based financial instruments are going to deliver on their promise, assets worth an aggregate of quadrillions of USD are going to be tokenized.
"Listing Pressure" is likely going to continue to be an interesting metric to keep an eye on as the industry expands.
And part of our thesis is, that for the foreseeable future there's still going to be a need for more high quality and reliable exchanges.
Once processes, standards, and user behaviors start to solidify over the coming decade, the crypto exchange industry will likely follow a path similar to traditional financial exchanges and the exchanges will begin to consolidate.
We'd like your thoughts on this.
Do you think "listing pressure" is an interesting capacity indicator for the crypto industry? What others do you find interesting?
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