Coinbase falls from second place in global top ranking according to report
There is a noticeable decline in the global trading volume of American crypto exchange Coinbase due to increased competition following the introduction of spot Bitcoin ETFs in the U.S.
Recent data compiled by blockchain analytics firm Kaiko suggests that Coinbase is no longer the second-largest brand in terms of global trading volume. Since October 2023, Coinbase’s market share has dropped from 11% to 8%, while rival exchange Bybit now holds about 16% of global trading volume.
Kaiko attributes Bybit’s market share growth to its efforts in capturing trading volumes by lowering its trading fees. The firm also notes that Bybit’s rise is not solely due to lower costs, suggesting that the exchange has benefited from Binance’s regulatory issues.
Analysts at Kaiko have pointed out that the increase in volume on Bybit has been driven by both Bitcoin and Ethereum, with their market share rising from 17% to 53% since last year.
In comparison, Binance has experienced a stronger increase in altcoin volume and still holds the first place in terms of market share at 54%. However, its share of Bitcoin and Ethereum originated volume has declined to 43% this year from 59% a year ago. Kaiko suggests that this change might be due to swings in risk sentiment and tends to decline more during bear markets.
Despite Bybit’s progress, Wall Street appears to be distancing itself from the exchange. Reports have emerged that Citadel Securities-backed prime brokerage firm Hidden Road has stopped offering its clients access to Bybit due to a disagreement over the exchange’s KYC/AML procedures. Bybit has not publicly addressed the matter, but a spokesperson for the exchange has stated that the platform is “committed to transparency and will provide further updates as the review progresses.”
