According to analysis agency Kaiko, crypto exchange Coinbase has been surpassed in volume by Bybit since October.
In a new reportKaiko says the launch of Bitcoin (BTC) exchange-traded funds (ETFs) in the US has helped Bybit more than others in its quest for market dominance.
“The launch of spot Bitcoin ETFs in the US has significantly increased global cryptocurrency trading volumes. However, not all stock markets have benefited equally from the rally that started in October.
One exchange has made by far the most gains: Bybit. Since October, the exchange’s market share has increased from 8% to 16%, surpassing Coinbase in March to become the second-largest exchange after Binance.
Despite reporting improved revenue and profits, Coinbase’s global market share has only seen a small increase of 1% over the same period.”
According to Kaiko, Bybit’s low costs could be a key factor behind the exchange’s growth.
“However, other offshore exchanges such as Binance and OKX also offer low fees, and many exchanges have ongoing promotions and rewards campaigns at no cost. Bybit launched zero fees for USDC trading in February 2023, while Binance has been promoting TUSD and FDUSD over the past year. This suggests that while low fees contribute to Bybit’s competitive advantage, they are not the only reason for its rise.”
According to Kaiko, trading in Bitcoin and Ethereum (ETH) has fueled Bybit’s growth, as the exchange’s market share of the two leading digital assets has grown from 17% to 53% over the past twelve months.
“Bybit’s growing market share in the spot market is also supported by its rapidly growing derivatives offering. In 2023, Bybit cemented its place as the second largest derivatives market after Binance.”
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Generated image: Midjourney