Coinbase loses second place in global top ranking

American crypto exchange Coinbase appears to be losing traction on global trading volume amid fierce competition sparked by the launch of spot Bitcoin ETFs in the US

Crypto exchange Coinbase is no longer the second-largest brand in terms of global trading volume, according to data compiled by blockchain analytics firm Kaiko. Since October 2023, Coinbase’s market share has fallen from 11% to 8%, while rival Bybit now accounts for about 16% of global trading volume.

Market share of crypto exchanges | Source: Kaiko

Kaiko states that Bybit’s efforts to capture transaction volume by reducing transaction fees have translated into market share growth. Kaiko emphasized that “low costs are not the only reason for its rise,” implying that the exchange “benefited from Binance’s regulatory issues.”

“Analyzing spot trading volumes by assets reveals that volume growth on Bybit is driven by BTC and ETH, whose market share has increased from 17% to 53% since last year,” say analysts at Kaiko.

Crypto exchanges ranked by transaction fees | Source: Kaiko

By comparison, Binance has seen “a stronger increase in altcoin volume,” the firm said, adding that although the exchange still ranks first in terms of market share (54%), its share of volume originating from Bitcoin and Ethereum has “increased.” It fell from 59 percent last year to 43 percent this year.” Kaiko suggests that the change “may be due to fluctuations in risk sentiment and tend to be more bearish during bear markets.”

Despite Bybit’s progress, Wall Street appears to be moving away from the stock market. In late May, reports emerged that Citadel Securities-backed prime brokerage firm Hidden Road had stopped offering its clients access to Bybit due to a dispute over the exchange’s KYC/AML procedures. Bybit has not publicly addressed the issue, but a spokesperson for the exchange said the platform is “committed to transparency and will provide further updates as the review progresses.”