Previously, Dog-bao said 🐕⚠️
Second-tier and third-tier exchanges will only become more and more dangerous.
Because top exchanges will siphon off most of the funds,
this isn’t unique to the crypto industry ———
Market Consolidation
Emerging industries are usually a hundred schools of thought,
but after struggles and broken capital chains,
they slowly "consolidate" into just a few brands.
1️⃣ Economies of Scale
The biggest companies have high order volumes, low costs, and stable supply chains—their costs are hard for second- and third-tier brands to compete with.
2️⃣ Network Effects
The more KOLs use it, the more people get pulled in for promotion—eventually the winner takes all.
3️⃣ Capital Barriers
After some time, top exchanges have already accumulated massive funds, data, and brand effects. New competitors naturally can’t outfight them.
Especially in crypto,
there’s one more thing that favors top exchanges:
🐾 Safety Concerns
Because fund security and whether the exchange runs away are the top concerns for users, which makes retail users avoid second- and third-tier exchanges.
🐕 In the near future, many second- and third-tier exchanges will go bankrupt, and especially the recent issues with bitmart have further amplified users’ fear.
Stick with the top 10 exchanges I recommended earlier 👀
Especially Binance 👍🏼
Second-tier and third-tier exchanges will only become more and more dangerous.
Because top exchanges will siphon off most of the funds,
this isn’t unique to the crypto industry ———
Market Consolidation
Emerging industries are usually a hundred schools of thought,
but after struggles and broken capital chains,
they slowly "consolidate" into just a few brands.
1️⃣ Economies of Scale
The biggest companies have high order volumes, low costs, and stable supply chains—their costs are hard for second- and third-tier brands to compete with.
2️⃣ Network Effects
The more KOLs use it, the more people get pulled in for promotion—eventually the winner takes all.
3️⃣ Capital Barriers
After some time, top exchanges have already accumulated massive funds, data, and brand effects. New competitors naturally can’t outfight them.
Especially in crypto,
there’s one more thing that favors top exchanges:
🐾 Safety Concerns
Because fund security and whether the exchange runs away are the top concerns for users, which makes retail users avoid second- and third-tier exchanges.
🐕 In the near future, many second- and third-tier exchanges will go bankrupt, and especially the recent issues with bitmart have further amplified users’ fear.
Stick with the top 10 exchanges I recommended earlier 👀
Especially Binance 👍🏼
