Bybit Surpasses Coinbase to Become Second-Largest Crypto Exchange
Bybit surpasses Coinbase to become the world’s second-largest cryptocurrency exchange.
After experiencing a surge in trading activity, Bybit achieved this milestone as the second-largest centralized crypto exchange (CEX) by trading volume, according to a report by Kaiko dated June 25. The report highlights:
Since October, the exchange’s market share has surged from 8% to 16%, surpassing Coinbase in March to become the second-largest exchange after Binance.
During the same period, Coinbase’s market share increased by just 1%, despite posting improved profits and revenue.
Bybit’s expanding market share can be partly attributed to regulatory challenges faced by Binance, which have led the world’s largest crypto exchange to relinquish some of its dominance in the industry.
Bybit Gains Ground While Binance Sees Market Share Decline
As Bybit’s market share has increased by over 8% in the past eight months, Binance has seen a decline in its market influence.
Since October, Binance’s dominance has dropped from 60% to 54%, marking a 6% decrease that can be linked to regulatory challenges faced by the exchange, as noted by Kaiko.
This could indicate that the exchange benefited from Binance’s regulatory troubles.
On November 21, 2023, U.S. officials announced a $4.3 billion settlement with Binance for Anti-Money Laundering violations, marking one of the largest criminal fines in U.S. history.
In June 2023, the SEC filed lawsuits against Coinbase and Binance Exchange for alleged securities violations. The SEC accused Binance and its founder, Changpeng Zhao, of misappropriating billions of user funds.
Despite these allegations, no evidence of user fund misappropriation has been substantiated. Binance continues to maintain its position as the world’s largest crypto exchange by trading volume.
Did Bybit’s market share surge due to zero-fee USDC trading?
Bybit, like its peers, implemented zero-fee trading for Circle’s USD (USDC) stablecoin in February 2023, potentially bolstering its trading volume. Kaiko’s analysis indicates that Bybit’s average fees remain competitive, aligning closely with those of Binance and OKX, known for offering some of the lowest fees in the industry.
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