- Coinbase’s market dominance is facing new competition within the US crypto exchange market.
- Newer platforms like Bullish are capturing increased market share, especially in key digital assets.
- “When it comes to Bitcoin (BTC) and Ethereum (ETH) trading, Bullish now has comparable trade volumes to Coinbase,” according to a recent Kaiko Research report.
Competition heats up in US crypto exchanges as Bullish challenges Coinbase’s market leadership in BTC and ETH trading volumes.
New Entrant Bullish Surpasses Coinbase in Trading Volumes
According to Kaiko Research, the US crypto exchange market is experiencing a significant shift. Bullish, a relatively new entrant, is now seeing trading volumes for Bitcoin (BTC) and Ethereum (ETH) that are comparable to, and at times even exceed, those of Coinbase. Launched in 2021 during the peak of the bull market, Bullish has maintained high trading volumes over the past year, capitalizing on the exodus of market makers from Binance.US due to regulatory scrutiny.
Corporate Leadership Fueling Bullish’s Rise
Noteworthy figures in the crypto and financial sectors have been pivotal in Bullish’s success. Brendan Blumer, co-founder of the EOS (EOS) blockchain, serves as the exchange’s chairman. Additionally, Tom Farley, former president of the New York Stock Exchange (NYSE) owner Intercontinental Exchange (ICE), holds the position of CEO at Bullish. Their combined expertise and leadership have played a crucial role in propelling Bullish to compete head-to-head with established exchanges like Coinbase.
Coinbase Premium Indicates Rising Institutional Interest
In contrast to Bullish’s rise, Coinbase remains a significant player in the market, capturing the interest of institutional investors. Kaiko Research highlights the “Coinbase premium,” defined as the difference between hourly Bitcoin prices on the Coinbase BTC-USD pair and Binance’s BTC-USDT pair. After reaching its lowest level since the collapse of Terra at the end of June, this premium turned positive in early July. This shift is seen as an indicator of growing institutional demand, given that institutional trading comprises over 80% of Coinbase’s activity, in comparison to Binance’s retail-heavy user base.
Conclusion
The evolving dynamics within the US crypto exchange market underscore the fierce competition between established players like Coinbase and ambitious new entrants like Bullish. While Bullish has made impressive strides in trading volumes for BTC and ETH, emerging regulatory landscapes and evolving market trends will likely continue to shape this competitive environment. Institutional interest in cryptocurrencies, as evidenced by the Coinbase premium, also indicates a growing maturity and acceptance of digital assets in traditional financial circles. As the market continues to evolve, stakeholders must stay informed to navigate these developments effectively.
