[NEWS] Bybit surpasses Coinbase and takes second place in trading share

On June 24th, data provider Kaiko Analytics announced that cryptocurrency exchange Bybit has significantly increased its market share, surpassing the US cryptocurrency exchange Coinbase in trading volume to take second place.

According to Kaiko's report, Bybit has seen remarkable growth since launching a Bitcoin (BTC) spot ETF in the US.

Founded in 2018 and headquartered in Dubai, United Arab Emirates, Bybit is a rapidly growing cryptocurrency exchange. As of October last year, Bybit's market share was 8%, but in the newest report, it has doubled to 16%. In March, it surpassed Coinbase to become the second-largest cryptocurrency exchange after Binance. Bybit's growth is also partly due to the increase in trading volume resulting from the introduction of a Bitcoin spot ETF.

Bybit's competitive edge stems from its lowest trading fees in the cryptocurrency industry. Bybit made USD Coin (USDC) trading fees free in February last year, significantly increasing USDC trading volume.

However, low fees alone are not enough to explain Bybit's rise, as other cryptocurrency exchanges such as Binance also boast low fees.

Analyzing cryptocurrency spot trading volume, Bybit's growth was driven by Bitcoin (BTC) and Ethereum (ETH), with the combined market share of the two increasing from 17% last year to 53%. Bybit's rapidly expanding derivatives products are also supporting its growing spot market share. Last year, Bybit established itself as the second-largest derivatives market after Binance.

Bybit's market share of open interest has remained stable since October last year but has seen significant growth in the first half of 2024, potentially benefiting from Binance's regulatory issues. In contrast, OKX's market share has fallen to 15% from 25% in early 2023.

Bybit co-founder and CEO Ben Zhou said, "We are pleased to see our continued growth and recognition in the industry. Our commitment to providing competitive trading fees, a safe and secure platform, and innovative products like integrated trading accounts is resonating with our users."

Meanwhile, despite reporting improved revenue and profits, Coinbase's global market share only increased by 1% over the same period.

In addition, despite Binance agreeing to a settlement with the SEC and other US regulators in late 2023 and taking steps to mitigate regulatory risk, the exchange's share has continued to decline, falling from 60% to 54% since October last year. Upbit and other exchanges are also on the decline.

Based on: Report
Image: Shutterstock

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