Kaiko Reports Bybit Ascends to Second-Largest Position Among Crypto Exchanges

Bybit, a cryptocurrency exchange headquartered in Singapore, has outperformed Coinbase, its American competitor, claiming the position of the world’s second-largest crypto trading platform, with Binance sitting at the top.

A press release featuring insights from Kaiko, a crypto data analysis firm, showcases that Bybit’s market share leapt from 8% to 16% since October of the previous year. Meanwhile, Coinbase experienced a comparatively modest growth of 1% during the same timeframe. This contributed to Bybit’s ascent past Coinbase in March, establishing it as the second-ranking exchange in the crypto space.

Rise to Prominence: Bybit

Bybit’s escalation can be ascribed to several pivotal events, including the advent of spot Bitcoin ETFs in the US and the diminishing dominance of Binance amidst regulatory entanglements.

A Kaiko report underscored that these developments propelled trading activity across multiple exchanges, with the exception of Binance. Despite this sector-wide buoyancy, not every exchange reaped the rewards evenly, particularly during the run-up to the spot ETF endorsements. Bybit demonstrated impressive strides in capturing market share, while Coinbase experienced only a slender uptick in spite of its higher financial turnovers.

Regulatory headwinds have also curtailed the market influence of other platforms like Upbit and OKX, whose trading volumes have dipped for reasons that remain unclear. As for Binance, its supremacy has waned from 60% to 54% in wake of its substantial $4.3 billion resolution with American regulatory bodies towards the end of 2023.

Ben Zhou, Bybit’s co-founder and CEO, expressed excitement over the exchange’s burgeoning trajectory: “We are delighted by Bybit’s steady climb and burgeoning reputation within the sector. Our dedication to offering low fees, a secure and steady exchange, and trailblazing offerings like the Unified Trading Account has struck a chord with our clientele.”

Competitive Pricing and a Stronger Spot Market Position

Bybit’s exponential jump in trade volumes transcends the narrative centered around Binance’s regulatory woes and America’s nascent spot Bitcoin ETF scene. The analysis by Kaiko pointed to Bybit’s aggressive fee structure and its enlarging market clout in bitcoin (BTC) and ether (ETH) transactions.

Standing out with some of the least expensive fees in the cryptocurrency market, Bybit is among leaders like OKX and Binance in this aspect. Echoing the no-fee promotions for assets like TUSD and FDUSD by other exchanges, including Binance, Bybit rolled out zero fees for USD Coin (USDC) trades starting February 2023.

Moreover, Bybit’s percentage of the BTC and ETH spot trade volume market has climbed from 17% to a commanding 53% since the year commenced. This significant spot market share growth has been complemented by Bybit’s derivatives market which, since last year, remains the runner-up to Binance in terms of size and volume.