Bybit Outranks Coinbase, Becoming the World’s Second-Largest Cryptocurrency Exchange

Bybit has vaulted over Coinbase, securing its position as the second-largest cryptocurrency exchange globally in terms of trading volume, thanks in large part to the debut of spot Bitcoin ETFs within the US market.

With a market share that doubled from 8% to 16%, Bybit has edged out Coinbase, which only managed a slight 1% increase in global share over the same timeframe. A study by Kaiko attributes this trend to Bybit’s performance, with higher revenues and profits noted, while Coinbase lags despite slight growth. According to Kaiko, the landscape of crypto trading is evolving.

Moreover, Binance, once at the forefront of the market with a 60% share, has seen a reduction to 54%. In the latter half of 2023, the platform tried to mitigate the influence of regulatory scrutiny with an agreement with US authorities, but even smaller exchanges such as Upbit experienced declines.

Bybit’s skyrocketing growth can be credited to its competitive low-fee structure, which ranks among the lowest. The exchange’s allure was further heightened when it introduced zero fees for USDC trades in February 2023.

The impressive expansion in spot trading volumes seen by Bybit, particularly in Bitcoin and Ethereum, now commands more than half of the trade at 53% compared to the previous year’s 17%, while Binance’s Bitcoin and Ethereum volumes fell to 43% from 59%, redistributing its focus to altcoins.

Bybit hasn’t only been proactive in the spot market but has also made notable advancements in derivatives. By 2023, it rose to be the second-biggest derivatives market, trailing Binance. The stable open interest shares since October indicate continuous growth, perhaps benefiting from Binance’s regulatory issues in the first half of the year.

Bybit, alongside OKX and Binance, has sustained substantial trading volumes since late 2023 despite regulatory headwinds. Bybit, in particular, exhibited a remarkable 264% growth, mirroring the aggregate rise in activity among leading exchange platforms.

Riding on its strategic initiatives and inherent competitive strengths, Bybit has not only eclipsed Coinbase but is also closing the gap on Binance, heralding the next phase in the evolution of the global cryptocurrency exchange market.

Also Read: Bybit’s Market Share Skyrockets as User Base Surpasses 30 Million