Bybit, a well-known cryptocurrencycurrency exchange, overtook Coinbase to become the world’s second-largest cryptocurrency exchange by trading volume. This achievement was driven by the launch of spot Bitcoin ETFs in the United States.
Bybit has seen significant market growth. Its market share doubled from 8% to 16%, pushing Coinbase down earlier this year. Kaiko report shows that while Coinbase increased its revenues and profits, it only captured a modest 1% of the global market share during the same period.
Meanwhile, Binance, once the market leader, saw its market share drop from 60% to 54%. Despite efforts to reduce regulatory risks by partnering with US regulators in the latter half of 2023, Binance’s share still decreased. Smaller offshore exchanges like Upbit also saw declines.
Bybit’s rapid growth is largely due to its competitive fee structure. In February 2023, Bybit introduced a fee-free trading option for USDC, making the platform more attractive to traders.
Bybit has expanded its presence in the spot market and has advanced derivatives offerings. By 2023, Bybit became the second-largest derivatives market, following Binance. It maintained a steady share of open interest since October, with significant growth in the first half of the year. This rise might be linked to Binance’s regulatory issues.
Bybit has significantly increased trading volumes for Bitcoin and Ethereum in spot trades. It now holds a 53% share, up from 17% a year ago. In contrast, Binance’s BTC and ETH volumes dropped from 59% to 43%. Binance has shifted focus towards trading other cryptocurrencycurrencies.
Since late 2023, Bybit, OKX, and Binance have maintained substantial trade volumes despite regulatory challenges. Bybit recorded an impressive 264% rise, reflecting the overall increase in activity on leading exchange platforms.
Bybit’s strategic moves and competitive advantages have placed it above Coinbase and close to Binance, shaping the future of global cryptocurrencycurrency exchanges.
Also read: Bonk (BONK) Now Available for Trading on Bitstamp
