Estimating the Market Capitalisation and Virtual Value of Leading Crypto Exchanges

Have you ever wondered what your favorite cryptocurrency exchange is actually worth?

Most crypto platforms are private companies, meaning they are not publicly traded. However, one exception is Coinbase, whose net worth is publicly available.

This naturally raises the question: can the value of other crypto exchanges be estimated by comparing them to Coinbase, given its known valuation?

For the first time, this analysis delves into the methods used to tackle this question, employing precise mathematical calculations and a thorough evaluation of both tangible and intangible factors.

Disclaimer: the article is presenting a possible logic that may or may not be utilised in calculating the exchanges’ virtual capitalisations. While based upon verified data, Coinbase is discussed and compared to performance of non-public exchanges, with extensive market speculation throughout, hence, the results of the calculation do not represent the factual exchanges’ market capitalisation and value. 

Note: the data below, as well as the basis for the Exchanges’ Trust and Value Index, is relevant as of November 20, 2024.

Ratio-Based Evaluation of Cryptocurrency Exchanges’ Virtual Capitalisation

As of November 20, 2024, Coinbase’s market capitalization stood at $81.26 billion.

One of the popular authors in crypto media, Tom White introduced an approach to estimate a metric referred to as the Virtual Capitalisation of cryptocurrency exchanges. This method calculates ratios based on key metrics that most accurately reflect an exchange’s net worth relative to Coinbase. The core metrics include:

To apply this formula, the research examines seven prominent cryptocurrency exchanges that vary in size and potential value:

• Binance

• Bybit

• OKX

• Kraken

• WhiteBIT

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Author: Adrian Barkley

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