American crypto exchange Coinbase has lost its position as the second-largest in global trading volume, a shift occurring since October 2023. Bybit now holds the second spot, increasing its market share to 16% from Coinbase’s 8%, as per blockchain analytics firm Kaiko.
Bybit’s growth can be attributed to its lower trading fees and benefiting from Binance’s regulatory issues. Specifically, Bybit’s trading volume in Bitcoin and Ethereum surged from 17% to 53% over the past year. In contrast, Binance’s share of Bitcoin and Ethereum volume fell from 59% to 43%, despite its overall market share remaining at 54%.
Even with its rise, Bybit faces scrutiny; Citadel Securities-backed Hidden Road ceased client access to Bybit over KYC/AML disagreements. Bybit pledges transparency as it continues reviewing its policies.
The shift in market dynamics underscores the competitive and regulatory challenges within the crypto exchange landscape.
