In a remarkable milestone for the cryptocurrency industry, Bybitone of the leading Singapore-based crypto exchanges has overtaken San Francisco-based crypto exchange Coinbase in terms of trading volume, securing its position as the second-largest crypto exchange in the world.
This milestone demonstrates Bybit’s rapid expansion and growing power in the global digital asset market as it attracts an ever-widening range of users. This feat occurs amid a competitive and dynamic environment for cryptocurrency exchanges, where platforms are always coming up with new ideas to dominate the market.
Bybit’s overall market share doubles
According to the latest market data, Bybit is now barely behind Binance, the world’s largest cryptocurrency exchange, with trading volume surpassing that of Coinbase. The crypto exchange has successfully expanded its operations and improved its platform to serve both retail and institutional traders, as highlighted by this achievement.
According to data Since Kaiko, since October 2023, Bybit’s market share has increased from 8% to 16%, while Coinbase’s share has increased by 1% during the same period. Binance While an agreement was reached with US regulators at the end of 2023, which could have reduced its regulatory concerns, the stock market’s dominance has been in decline since October, falling from 60% to 54%.
Kaiko said the platform’s increased trading volume was due to various factors such as new Bitcoin exchange-traded fund (ETF) offerings and affordable gas fees, which are among the lowest in the industry. Over time, Bybit has successfully adopted a user-centric strategy by offering a wide selection of cryptocurrencies, competitive trading fees and cutting-edge trading tools.
In February 2023, the platform introduced free trading for USDC, while Binance promoted TUSD and FDUSD last year. Although the exchange’s low fees give it a competitive advantage, Kaiko stressed that they are not the main cause of the growth.
Kaiko’s analysis of spot trading volumes by asset shows that Ethereum And Bitcoinwhose market share has increased from 17% to 53% since last year, have also contributed significantly to the increase in volumes on Bybit.
Increase in derivatives trading offers
Importantly, Bybit has shown initiative in introducing new services, including derivatives trading and a wide range of trading tools, which have found favor with a global audience.
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According to Kaiko’s report, the cryptocurrency exchange’s fast-growing derivatives offering has also contributed to its significant spot market share. The platform derivatives market saw a notable rise in 2023, cementing its position as the second largest after Binance.
Bybit has seen considerable growth in the first half of 2023, despite its open interest market share remaining unchanged since October. This would suggest that Binance’s Regulatory Issues contributed to the growth of the stock market.
Featured image of Adobe Stock, chart from Tradingview.com
