Bybit Overtakes Coinbase to Become Second-Largest Crypto Exchange Amid Binance's Regulatory Turmoil
Summary:
Bybit has outperformed Coinbase to become the world's second-largest crypto exchange by trading volume. This market shift has been driven by a surge in trading, coupled with regulatory challenges faced by Binance, the world's largest crypto exchange, which reportedly lost some of its dominance in the industry. A potential contributor to Bybit's increased volume is the introduction of zero-fee trading for Circle's USD (USDC) stablecoin in February 2023. Despite legal allegations against Binance, it remains at the top spot by trading volume.
Bybit has overtaken Coinbase to secure its position as the second-ranking global cryptocurrency exchange. A surge in trading saw Bybit exceed Coinbase in trading volume, making it the second largest centralized crypto exchange (CEX), Kaiko noted in a report from June 25. The report indicated that the exchange's market share jumped from 8% to 16% since October, surpassing Coinbase in March and trailing only behind Binance.CEX market share of volume. Source: KaikoIn the same period, while Coinbase reported higher profits and increased earnings, its market share merely grew by 1%. Binance's past regulatory issues, which led to a loss in its dominance over the industry, might have contributed to Bybit's expanding market share.Related: Cathie Wood’s backing reaffirms Trump as a ‘pro-innovation’ crypto-friendly contenderBybit's advantage as Binance's market share dwindlesBinance has witnessed a tumble in its dominance over the past eight months as Bybit saw its market share rise by over 8%. Regulatory hurdles have caused Binance's dominance to shrink from 60% to 54%, a drop of 6%. Kaiko's report suggested that Binance's regulatory challenges could have played to Bybit's advantage.On Nov. 21, 2023, Binance agreed to a settlement of $4.3 billion with U.S. authorities over Anti-Money Laundering breaches, one of the largest criminal fines in U.S. history. In June 2023, Coinbase and Binance Exchange were sued by the SEC for possible securities violations. In its lawsuit against Binance, the SEC accused the organization and its founder, Changpeng Zhao, of misappropriating billions in user funds. Even though Binance faced initial charges, there wasn't any proof of fund misappropriation, and Binance remains the world's largest crypto exchange by trading volume.How CZ built Binance and became the wealthiest figure in crypto | Crypto Stories Ep. 16. Source: CointelegraphRelated: Crypto History: Future of crypto exchanges, regulatory confrontations, and governanceDid no-fee USDC trading prop up Bybit’s market share?Bybit emulated other exchanges by initiating a no-fee trading policy for Circle's USD (USDC) stablecoin in February 2023, potentially contributing to the increase in trading volume. In general, Bybit’s average fees are on par with Binance and OKX exchanges, the lowest fees in the industry, as per Kaiko.CEX trading fees. Source: KaikoMoving forward, the exchange will persist in providing competitive and affordable fees, says Ben Zhou, co-founder and CEO of Bybit. He stated:"We remain committed to offering competitive fees, a safe and secure platform, and innovative products like Unified Trading Account, which have found favor with our users."Magazine: Crypto voters are already influencing the 2024 election – and the trend looks set to stay.
Published At
6/25/2024 4:01:03 PM
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