Binance's Legal Settlement Boosts Market Shares for Coinbase and Bybit
Summary:
After Binance's multi-billion-dollar settlement with U.S. regulators over anti-money laundering allegations, other cryptocurrency exchanges, including Coinbase and Bybit, have seen gains in their market shares, as per a report by Kaiko Research. Despite the legal difficulties, Binance continues to lead the market in liquidity for both BTC and altcoins. Following the legal developments, Coinbase's shares have reached an 18-month high.
In the wake of cryptocurrency exchange Binance settling a multi-billion-dollar case with U.S. regulators, Coinbase has seen a noticeable increase in its market share, as reported by an on-chain data analytics firm. Last week, Binance and the U.S. Department of Justice agreed to a settlement of $4.3 billion, resolving issues of suspected money laundering. This legal challenge has resulted in growth for other cryptocurrency exchanges, according to data from Kaiko Research. The research company's recent report shows an increase in Coinbase's trading volumes, particularly during Europe's trading day and at the start of Asia's trading day, which falls outside of standard U.S. trading hours. Concurrently, Bybit has apparently seen considerable shifts throughout the day. "Bybit shows outstanding progress, increasing its market share every hour and developing by more than 20% in 16 of 24 hours," the report read. Despite facing legal predicaments, Binance has allegedly managed to maintain its liquidity in all cryptocurrencies. "Even though Coinbase's volume share is increasing, Binance continues to hold the top spot for liquidity in BTC and altcoins," the report continued. Meanwhile, others in the industry view Binance's settlement with the DoJ as a boon for the crypto community. Mike Novogratz from Galaxy Digital suggests that the recent legal proceedings against Binance could in fact benefit the whole crypto sector. “People were apprehensive about transacting with Binance. Now there's less to be anxious about,” he commented. More recently, it was reported that Coinbase’s shares have reached their highest level in 18 months following Binance’s legal issues. On November 27, Coinbase’s shares closed at $119.77, the highest close since May 2022’s close at $114.25, per TradingView data.
Published At
12/2/2023 10:13:10 PM
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