Bybit has taken the rope from Coinbase to become the second-largest crypto exchange in trading volume since March. This shift in leadership could lead to changes in trading behaviors, market dynamics, and competition, potentially shaping the future of the crypto market.
Binance Woes Boosted the Growth of Bybit
According to Kaiko’s data analysis, this shift in position was influenced by the launch of Spot Bitcoin ETF in the United States. This helped Bybit to double its market shares by 16%.
Coinbase, on the other hand, only saw a 1% increase during the same period. Also, the exchange increased its market share, aided by its low trading fees and expanding range of derivatives.
Notably, Kaiko revealed that Bybit’s growth was influenced by a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance in March 2023.
As a result, Binance’s market share decreased to 54% in March from 60% in October, leading to a decline in its influence. Bybit’s market share, however, has grown by over 8% in the last eight months. This remarkable growth by Bybit has been linked to its recent strategy.
As reported earlier by Crypto-Vanguard, the exchange has opened its platform to Chinese expat traders. Additionally, like other exchanges, Bybit implemented zero-fee trading for Circle’s USD (USDC) stablecoin in February 2023, potentially boosting trading volume.
Binance Regulatory Hurdles
Over the years, Binance has faced regulatory challenges that have impacted its market share and industry dominance.
The regulatory challenges faced by the exchange, including the $4.3 billion settlement for Anti-Money Laundering violations with the US DOJ and the SEC lawsuit for alleged securities violations impacted the company’s reputation.
Despite these issues, the exchange has continued to showcase its resilience as it maintains its status as the world’s largest crypto exchange by trading volume while making a significant impact in the industry.
Recently, the exchange revealed that it will list zkSync (ZK) trading pairs and introduce a distribution program alongside it.
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