Markets
Bybit Surpasses Coinbase’s Crypto Trading Market Share – TradingView News
Bybit has surpassed Coinbase to become the second-largest cryptocurrency exchange by volume, according to a recent report published by Kaiko. It is now behind only Binance, which dominates the market.
Second largest crypto exchange
The report highlighted that Bybit’s market share increased from 8% in October 2023 to 16% in June 2024, the highest growth rate among major exchanges. Coinbase also improved its market share by just one percentage point, from 7% to 8% over the same period. Demand for Bybit surpassed the volume handled by Coinbase last March.
However, Binance lost market share as its dominance dropped to 54% of total volume in June compared to 60% last October.
Finance tycoons
Market share of major cryptocurrency exchanges, Source: Kaiko
Bybit’s spot trading offering has been driven by Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The share of these two cryptocurrencies on the exchange jumped to 53%, from just 17% last year.
Market leader Binance, on the other hand, witnessed a drop in demand for Bitcoin and Ethereum, which dropped to 43% from 59% a year ago. However, there was a stronger increase in altcoin volume.
Finance Magnates previously reported that the number of registered users on Bybit surpassed 30 million recently, as the exchange grew its customer base by 10 million over the past six months.
Low rate is a factor
Kaiko highlighted that one factor that could have benefited Bybit “could be its competitive fees, which are among the lowest in the industry”. In fact, the exchange introduced zero-fee trading for Circle’s USD (USDC) stablecoin in February.
CEX trading fees, Source: Kaiko
“However, other offshore exchanges such as Binance and OKX also offer low fees, and many exchanges have ongoing zero-fee promotions and reward campaigns… This suggests that although low fees contribute to Bybit’s competitive advantage, they are not the sole reason for its increase,” the report added.