Coinbase Halts 80 Non-USD Trading Pairs To Enhance Liquidity Amid Trading Volume Drop
Summary:
Coinbase, a leading US-based crypto exchange, is discontinuing 80 non-USD trading pairs to bolster platform liquidity and improve overall market health. The company has assured that users can continue trading in its liquid USD markets using their USDC balances. This move comes amidst a significant drop in the exchange's trading volume this year, with data revealing a 52% drop in Coinbase's spot trading volumes in Q3 compared to last year.
Coinbase, a well-known cryptocurrency exchange based in the United States, is withdrawing numerous trading pairs to enhance its platform's liquidity. Coinbase has discontinued 80 non-USD trading pairs, involving cryptocurrencies such as Bitcoin and Tether, as well as traditional fiat currencies like the Euro. Coinbase disclosed on October 16 that the goal behind disabling these trading pairs is to consolidate liquidity and foster improved market health. This change took effect on Coinbase and platforms including Advanced Trade and Coinbase Prime at 7:30 pm UTC on October 16.
The decision to withdraw these pairs aligns with similar moves made by Coinbase earlier in October. Coinbase clarified that users can still trade in the liquid USD markets with their existing balances on USDC, a product of Coinbase. The markets affected by these changes contribute a negligible portion to the total trading volume of Coinbase exchange, the company noted.
For some time, Coinbase has been disabling trading pairs on its platform to bolster liquidity. The firm discontinued 41 non-USD markets in the middle of September, for the same reasons. Among the trading pairs withdrawn by Coinbase, none included USDC, a stablecoin jointly developed by Coinbase and Circle.
These liquidity-improvement efforts by Coinbase are happening at a time when the exchange's trading volume has seen a sharp decline this year. Data from crypto market analyst firm CCData indicates a 52% drop in Coinbase's spot trading volumes in the third quarter compared to the same period last year. Other major crypto exchanges like Binance have also experienced a dip in their spot market share this year. As per CCData, Binance's spot market share has decreased each month since early 2023, plunging from 55% to 34% in September 2023.
Published At
10/17/2023 10:06:35 AM
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