Bybit Surpasses Coinbase in Trading Volume Boosted by Bitcoin ETFs and Low Fees

• Crypto exchange Coinbase has been surpassed in trading volume by Bybit since October, reveals the latest analytics from Kaiko.
• The introduction of Bitcoin (BTC) exchange-traded funds (ETFs) in the US has particularly bolstered Bybit’s market standing.
• The launch of spot Bitcoin ETFs in the US has significantly increased global crypto trading volumes, but Bybit has emerged as the biggest winner in this rally, growing its market share from 8% to 16% since October.

Discover how Bybit has outpaced Coinbase in trading volumes, driven by strategic moves and competitive advantages in the evolving crypto market.

Bybit Surpasses Coinbase in Trading Volume

The recent analytics report from Kaiko reveals that Bybit has surged past Coinbase in trading volumes as of October. The launch of Bitcoin exchange-traded funds (ETFs) in the US has been a major factor in this shift. While many exchanges have seen a rise in trading volumes, Bybit has notably emerged ahead of the pack.

Impact of Spot Bitcoin ETFs on Market Dynamics

According to Kaiko’s report, the introduction of spot Bitcoin ETFs in the US has dramatically boosted global cryptocurrency trading volumes. This surge has not been uniformly experienced across all exchanges, with Bybit significantly increasing its market share, from 8% in October to 16% by March, overtaking Coinbase to become the second-largest exchange after Binance.

Factors Contributing to Bybit’s Growth

While Bybit’s impressive growth in market share can be partly attributed to low trading fees, it’s essential to recognize that other exchanges also offer competitive fee structures. For example, Binance and OKX frequently run zero-fee promotions and reward campaigns. Despite this competitive landscape, Bybit’s strategic initiatives, including zero fees for USDC trading introduced in February 2023, have given it an edge.

Surge in Bitcoin and Ethereum Trading on Bybit

Bybit’s ascendancy is also reflected in its growing dominance in Bitcoin and Ethereum trading markets. Over the last year, Bybit’s market share in trading these leading digital assets has skyrocketed from 17% to 53%. This significant growth underscores Bybit’s effective strategies in attracting high-volume traders and increasing its footprint in key markets.

Expansion of Bybit’s Derivatives Offering

The expansion of Bybit’s derivatives trading offerings has been another pillar of its growth strategy. Bybit has firmly established itself as the second-largest derivatives market after Binance in 2023. The diversified product offerings in derivatives trading have not only attracted a broader user base but also enhanced Bybit’s competitive positioning in the global crypto market.

Conclusion

In summary, Bybit’s rapid rise in trading volume and market share can be attributed to a combination of strategic initiatives, including competitive fee structures and an expanded derivatives offering. As the crypto market continues to evolve, Bybit’s continued innovation and adaptability will likely play a critical role in its quest to further solidify its position among top global exchanges.