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Bybit surpasses Coinbase’s cryptocurrency trading market share
According to a recent report published by Kaiko, Bybit has surpassed Coinbase to become the second largest cryptocurrency exchange in terms of volume. It is now only behind Binance, which dominates the market.
The report highlights 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 over the same period, from 7% to 8%. Demand on Bybit has exceeded the volume handled by Coinbase last March.
However, Binance has lost market share, as its dominance fell to 54% of total volume in June, compared to 60% last October.
Market share of major cryptocurrency exchanges, Source: Kaiko
Bybit’s Spot trading supply was led by Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The share of these two cryptocurrencies on the stock exchange jumped to 53% compared to 17% last year.
Market leader Binance, on the other hand, saw demand for Bitcoin and Ethereum decline to 43% from 59% a year ago. However, it saw a stronger increase in altcoin volume.
Financial tycoons have previously reported that the number of registered users on Bybit have exceeded 30 million recently, as the exchange increased its customer base by 10 million in the last six months.
Low fare is a factor
Kaiko pointed out that one factor that could have benefited Bybit “could be its competitive rates, which are among the lowest in the industry.” In February, in fact, the exchange introduced zero-commission trading for Circle’s USD (USDC) stablecoin.
CEX Trading Fees, Source: Kaiko
“However, other offshore exchanges such as Binance and OKX also offer low fees, and many exchanges have zero-commission promotions and ongoing rewards campaigns… This suggests that while low fees contribute to Bybit’s competitive advantage, they are not the ‘the only reason for its growth,’ the report adds.
According to a recent report published by Kaiko, Bybit has surpassed Coinbase to become the second largest cryptocurrency exchange in terms of volume. It is now only behind Binance, which dominates the market.
The report highlights 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 over the same period, from 7% to 8%. Demand on Bybit has exceeded the volume handled by Coinbase last March.
However, Binance has lost market share, as its dominance fell to 54% of total volume in June, compared to 60% last October.
Market share of major cryptocurrency exchanges, Source: Kaiko
Bybit’s Spot trading supply was led by Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The share of these two cryptocurrencies on the stock exchange jumped to 53% compared to 17% last year.
Market leader Binance, on the other hand, has seen demand for Bitcoin and Ethereum decline to 43 percent from 59 percent a year ago. However, it saw a stronger increase in altcoin volume.
Financial tycoons have previously reported that the number of registered users on Bybit have exceeded 30 million recently, as the exchange increased its customer base by 10 million in the last six months.
Low fare is a factor
Kaiko pointed out that one factor that could have benefited Bybit “could be its competitive rates, which are among the lowest in the industry.” In February, in fact, the exchange introduced zero-commission trading for Circle’s USD (USDC) stablecoin.
CEX Trading Fees, Source: Kaiko
“However, other offshore exchanges such as Binance and OKX also offer low fees, and many exchanges have zero-commission promotions and ongoing rewards campaigns… This suggests that while low fees contribute to Bybit’s competitive advantage, they are not the ‘the only reason for its growth,’ the report adds.