In a notable step for the cryptocurrency sector, BybitSingapore’s leading cryptocurrency exchange has surpassed San Francisco-based cryptocurrency exchange Coinbase in terms of trading volume, securing its position as the second largest cryptocurrency exchange in the world.
This achievement demonstrates Bybit’s rapid expansion and growing strength in the global digital asset market as it attracts an ever-widening range of users. This achievement comes amidst 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 shares have doubled
As of the latest market data, Bybit is now barely behind Binance, the world’s largest cryptocurrency exchange, as its trading volume has soared beyond its 2019 level. CoinbaseThe cryptocurrency exchange has successfully expanded its operations and improved its platform to serve both individual and institutional traders, which highlights this achievement.
according to Data From Kaiko, since October 2023, Bybit’s market share has risen from 8% to 16%, while Coinbase’s has increased by 1% over the same time frame. despite of Binance After reaching a settlement with US regulators in late 2023, which may have reduced its regulatory concerns, the exchange’s dominance has declined since October, falling from 60% to 54%.
Caico reported that the increase in the platform’s trading volume was driven by various factors such as new Bitcoin exchange-traded fund (ETFs) offerings and reasonable gas fees, which are among the lowest in the sector. Over time, Bybit has successfully adopted a user-centric strategy by providing a wide range of cryptocurrencies with competitive fees and cutting-edge trading tools.
In February 2023, the platform introduced free trading for USDC, while Binance has been promoting TUSD and FDUSD over the past year. Although the exchange’s low fees give it a competitive advantage, Caico noted that they are not the main reason for growth.
Caico’s analysis of spot trade volumes by asset shows this Ethereum And Bitcoinwhich has increased its market share from 17% to 53% since last year, has also contributed significantly to Bybit’s volume increase.
A boom in derivatives trading offerings
It is important to note that Bybit has shown initiative in offering new services, including derivatives trading and a wide range of trading instruments, which have found favor with audiences around the world.
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According to Caico’s report, the cryptocurrency exchange’s fast-growing derivatives offerings have also contributed to its vast spot market share. The platform derivatives market witnessed a notable boom in 2023, cementing its position as the second largest market after Binance.
Bybit has seen significant growth in the first half of 2023, despite the fact that its market share of open interest has not changed since October. This would suggest so Regulatory issues for Binance Contribute to the growth of the stock market.
Featured image from Adobe Stock, chart from Tradingview.com