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US cryptocurrency exchange Coinbase appears to be losing momentum in global trading volume amid fierce competition sparked by the launch of Bitcoin exchange-traded funds in the US.
Crypto exchange Coinbase It is no longer the second-largest brand by global trading volume, according to data compiled by blockchain analytics firm Kaiko. Since October 2023, Coinbase has seen its market share drop from 11% to 8% while competing with Bybit It now represents about 16% of global trading volume.
Kaiko notes that Bybit’s efforts to capture trading volumes by lowering its trading fees have translated into market share growth. Kaiko highlights that lower costs “were not the only reason for their rise,” meaning that the exchange “benefited from the Binance platform.” Organizational problems“.
“An analysis of spot trade volume by asset reveals that the increase in Bybit volume was driven by both BTC and ETH, whose market share rose from 17% to 53% since last year,” say analysts at Kaiko.
For comparison, Binance The company said it had seen “a stronger increase in the volume of altcoins,” adding that although the exchange still holds first place in terms of market share (54%), its share of… Bitcoin And Ethereum Original volume “declined to 43% this year from 59% a year ago.” Caico notes that the change may be driven by “fluctuations in risk sentiment and tends to fall further during bear markets.”
Despite Bybit’s progress, Wall Street appears to be distancing itself from the stock exchange. In late May, reports emerged that brokerage firm Hidden Road was backed by Citadel Securities I stopped It offers its clients access to Bybit due to the dispute over the exchange’s KYC/AML procedures. Bybit has not addressed the matter publicly, but a spokesperson for the exchange said the exchange is “committed to transparency and will provide further updates as the review progresses.”
