As a researcher with a background in cryptocurrency and digital asset markets, I’m excited to witness the remarkable growth of Singapore-based exchange Bybit. According to recent reports from crypto analytics platform Kaiko, Bybit has surpassed its U.S.-based rival Coinbase to become the second-largest digital asset trading platform after Binance.
As a market analyst, I’ve observed some noteworthy developments in the cryptocurrency trading scene. Bybit, a Singapore-headquartered exchange, has managed to surpass its major competitor, Coinbase based in the US, and claimed the second position among digital asset trading platforms, trailing only behind Binance.
Based on a press announcement referencing a report from crypto analytics firm Kaiko, Bybit’s market dominance has risen significantly from 8% to 16% between October 2023 and currently. Concurrently, Coinbase experienced a modest increase of only 1%. As a result of this consistent expansion, Bybit overtook Coinbase in March, securing the position as the second-largest crypto exchange.
Bybit Becomes Second-Largest Exchange
Multiple elements fueled Bybit’s expansion. The debut of U.S.-listed spot Bitcoin ETFs was one such factor. Another contributing element was Binance experiencing regulatory challenges that weakened its market dominance.
As an analyst, I observed that although both events – the market volatility and the approval of Bitcoin ETFs – boosted trading volumes for cryptocurrency exchanges across the board, with the exception of Binance, not every entity experienced equal benefits. Bybit registered the most substantial growth, whereas Coinbase only saw a slight uptick in spite of reporting improved profitability and revenue.
It’s intriguing that Binance isn’t the only cryptocurrency exchange facing a reduction in market share due to regulatory issues. Exchanges such as Upbit and OKX have also seen decreased trading volumes without clear explanations. Binance, which previously held a 60% share, has dropped to 54% following its $4.3 billion settlement with US authorities towards the end of 2023.
“Bybit’s expansion and industry acclaim bring us great joy. Our dedication to offering affordable fees, ensuring user safety and security, and introducing advanced features such as the Unified Trading Account, has struck a chord with our customer base,” expressed Bybit’s co-founder and CEO Ben Zhou.
Low Fees and Rising Spot Share
As an analyst, I’ve noticed that Bybit’s increasing transaction volumes can’t be solely explained by the Binance drama and the US spot Bitcoin ETF market. According to Kaiko’s findings, the exchange’s attractive transaction fees have played a significant role in this trend. Additionally, Bybit has seen an expansion of its BTC and ETH market shares.
In the realm of cryptocurrency exchanges, Bybit stands out with its low transaction fees, rivaling those of OKX and Binance. Similar to other trading platforms that offer periodic waivers on fees for specific assets such as TrueUSD (TUSD) and First Digital USD (FDUSD), Bybit introduced fee-free transactions for USD Coin (USDC) in February 2023.
As an analyst, I’ve observed a significant shift in Bybit’s market share for BTC and ETH spot trading. From holding a 17% share in 2023, it has surged to commanding a 53% market dominance as of now. This growth can be attributed to the robust expansion of Bybit’s derivatives market, which has consistently ranked second largest following Binance since 2023.
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2024-06-26 00:44