The Bitcoin market is not widespread across global investors, but it is still controlled by a few dominant actors, including centralized exchanges. According to new data, more than 10% of the total Bitcoin’s circulating supply is divided among five prominent centralized exchanges.

More than 1.96 Million BTC in Five Exchanges

The data published by Chain.io unveils that 10.6% of BTC circulating supply is present over five centralized exchanges, including “Coinbase, Huobi, Binance, OKEx, and Kraken.” These centralized exchanges hold more than 1.96 million.

Coinbase tops the list in holding the largest number of Bitcoin as it has 944,904 BTC in 4.39 million different wallets. Huobi comes at a second number with 323,665 BTC across 901,600 wallet addresses. Binance, the largest cryptocurrency exchange by volume, takes the third spot as it is holding 289,961 BTC among 2.7 million addresses. OKEx and Kraken are standing at fourth and fifth positions, holding 276,184 and 126,510, respectively.

After that, there come seven centralized exchanges which are having 210,000 BTC. These exchanges include Bitfinex, Bitflyer, Bitstamp, Bittrex, Poloniex, Gate.io, and Coincheck.

Crypto investors still trust centralized exchanges and put a significant amount of their crypto holdings over centralized platforms. In recent months, two centralized exchanges were affected badly: KuCoin became vulnerable to cyberattack, while BitMEX was charged by the US Commodity Future Trading Commission (CFTC).

Growth of Decentralized Exchanges

After ruling for a long time centralized exchanges are now also accompanied by decentralized crypto exchanges whose trading volume is also growing day by day. Uniswap is the major decentralized exchange which has shown exponential growth in Q3. Uniswap’s user community has expanded due to the successful adoption of DeFi projects among investors.

In its June report, Chainalysis reported that almost 3.7 million (20%) BTC are not witnessed moving, which can be lost. If 3.7 million BTC are lost then these five centralized companies have 15% of the current circulating supply.

The control of five entities over most of the supply is against the decentralized principles of crypto and blockchain space. Whales also control the markets by buying or dumping coins over exchanges.