Crypto exchange OKX achieves watershed moment: What caused it?
- OKX has consistently fared well on CoinGecko’s ‘Trust Score’ indicator.
- As per its latest proof-of-reserve report, OKX had a reserve ratio of greater than or equal to 100%.
OKX [OKB], one of the largest crypto exchanges by trading volume, achieved a significant milestone recently. The exchange’s official X (formerly Twitter) handle stated that it was ranked first by popular crypto market data aggregator CoinGecko in terms of Trust Score and 24-hour trading volume.
They track 808 crypto exchanges with total reserves of $98.3 Billion.
— OKX (@okx) October 15, 2023
Realistic or not, here’s OKB market cap in BTC’s terms
Statistics showed OKX sliding to the fourth position at the time of writing. However, it took nothing away from the fact that the Seychelles-based platform was a major player in the market with strong fundamentals.
OKX piggybacks on BTC’s rally
According to CoinGecko, OKX facilitated trades worth over $72 million in the last 24 hours, nearly double the amount from the previous day. The sharp lift in trading was most likely due to Bitcoin [BTC] rallying past $27,000.
In fact, the BTC-USDT trading pair was the most popular on the exchange, accounting for the bulk of the trading volume.
OKX’s strong fundamentals
Apart from trading activity, OKX has consistently fared well on CoinGecko’s ‘Trust Score’ indicator.
Trust Score is based on liquidity, web traffic quality, past incidents of problems, and how transparent the platform had been in regard to its assets and liabilities.
Hence, it could be possible that some exchanges may report higher volumes but ranked lower in trust score due to issues in the aforementioned areas.
For example, the 24-hour normalized trade volume indicator used reported volumes in conjunction with web traffic statistics to get a fair idea about the claim. In the case of OKX, both the 24-hour normalized trade volume and reported volume were equal.
Interestingly, there was a wide gulf between the two for world’s largest exchange Binance.
Apart from this, the exchange regularly publishes its proof-of-reserves (PoR) report. It recently shared its 11th consecutive PoR report, with most assets having a reserve ratio more than or equal to 100%.
This meant that the exchange was in a position to honor withdrawals at any given point of time. Moreover, OKX’s clean asset reserves were found to be 100%, the best among major exchanges, as per CryptoQuant.
Read OKX’s [OKB] Price Prediction 2023-24
Clean reserves are the total reserve of each exchange, excluding its native token. There was a potential risk to an exchange’s liquidity if a self-issued token holds a significant percentage of the total reserve amount. However, this was not the case with OKX.
At the time of writing, exchange token traded at $43.23.