Coinbase's Spot Trading Volume Plummets Over 50%, Yet Gains Market Share Amid Binance's Regulatory Woes
Summary:
US-based cryptocurrency exchange, Coinbase, witnesses over 50% drop in spot trading volume for Q3 2023, marking its lowest since going public on Nasdaq in 2021. Despite the decline, Coinbase gained market share in the recent quarter amid increased regulatory scrutiny on Binance. While exchange giants like Binance and Coinbase face downturns in web traffic, other platforms such as OKX, HTX, Gate.io, CoinW, XT.com, and Bitmart demonstrate significant year-to-date increases.
Coinbase, a leading US-based cryptocurrency exchange, has seen its spot trading volume decrease by over half, indicating a changing trend in the world of virtual currency trading. On October 11, Bloomberg referenced research from digital asset data firm CCData to report a recorded spot trading volume of approximately $76 billion for Coinbase. This represents a 52% contraction in spot trading for Q3 2023 from the Q3 2022 figures. An interesting note is that this is the weakest performance since the time when Coinbase went public on the Nasdaq Stock Market in 2021, predating the surge in cryptocurrency prices. Source: BloombergDespite the fall-off in the spot trading volume, the report highlighted that Coinbase had expanded its market share during the last quarter due, in part, to the increased regulator scrutiny faced by cryptocurrency exchange Binance. In a notable contrast, as of October 6, Binance's spot market share had decreased for seven straight months. The reduction in the trading volume has, reportedly, been usurped by competing platforms like Coinbase, Bybit, and DigiFinex. Interestingly, while the trade volumes and market shares are diminishing for cryptocurrency exchanges, some platforms have successfully increased their website traffic. Binance and Coinbase experienced significant downturns in web traffic, but data from September 18 revealed that exchanges such as OKX, HTX (previously known as Huobi), Gate.io, CoinW, XT.com, and Bitmart had seen noteworthy YTD improvements in their web traffic. Specifically, the available figures show a massive 200% rise in HTX’s website traffic, whereas Gate.io and CoinW reported respective bumps of 143% and 66%.
Published At
10/12/2023 8:30:11 AM
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