As a researcher with extensive experience in the cryptocurrency market, I’m particularly intrigued by the recent developments in the exchange industry, specifically the meteoric rise of Bybit to become the world’s second-largest cryptocurrency exchange. The launch of spot Bitcoin ETFs in the US has indeed sparked a surge in global crypto trading volumes, but not all exchanges have reaped the same benefits.
Bybit, a prominent cryptocurrency exchange, now ranks as the second largest globally in terms of trading volume, surpassing Coinbase. This notable achievement can be attributed to Bybit’s recent launch of spot Bitcoin ETFs in the United States.
According to a recent Kaiko report, Bybit’s market share has significantly grown from 8% to 16%, causing a decline for Coinbase this year. Despite this expansion leading to higher revenues and profits for Coinbase, their global market share has only marginally increased by 1%.
As a researcher studying the cryptocurrency market, I’ve noticed that the introduction of spot Bitcoin Exchange-Traded Funds (ETFs) in the US has led to a substantial increase in global crypto trading volumes. This positive development has brought about heightened investor interest and liquidity in the market.
— Kaiko (@KaikoData) June 25, 2024
In the second half of 2023, Binance, who had previously held a dominant market share of 60%, experienced a decrease to 54%. Despite attempts to mitigate regulatory risks through negotiations with US authorities, other smaller offshore exchanges like Upbit similarly saw declines.
Bybit’s impressive growth can be attributed largely to its competitive fee structure, which ranks among the lowest in the industry. Notably, Bybit introduced zero-fee trading for USDC in February 2023, making it even more alluring for traders.
As a crypto investor, I’ve noticed some significant shifts in the trading volumes between Bybit and Binance when it comes to Bitcoin (BTC) and Ethereum (ETH) spot trades. Bybit has experienced a substantial increase in these two coins’ trading volumes, with BTC and ETH accounting for approximately 53% of the total trade value. In comparison, this is a notable rise from the 17% share they held a year ago. Conversely, Binance has seen declining volumes for BTC and ETH, now representing only around 43% of their total trading value. Instead, Binance has been focusing more on altcoins.
In contrast to its robust expansion into the spot market, Bybit’s derivatives sector has equally advanced. By 2023, Bybit ranked as the second largest derivatives exchange following Binance, maintaining a consistent open interest ratio since October. However, the substantial growth observed during the first half of the year could potentially be attributed to regulatory challenges faced by Binance.
Since the end of 2023, Bybit, OKX, and Binance have seen substantial trading volumes despite encountering regulatory hurdles. Among these three exchanges, Bybit displayed a remarkable increase of 264%, aligning with the overall surge in activity on leading cryptocurrency platforms.
The strategies and strengths of Bybit have helped it surpass Coinbase and approach Binance’s level, signaling the future development trend for international cryptocurrency trading platforms.
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2024-06-26 08:21