- The cryptocurrency exchange Bybit, based in Singapore, has surpassed the U.S.-based Coinbase to become the world’s second-largest digital asset trading platform, trailing only Binance.
- According to a report from crypto analytics platform Kaiko, Bybit’s market share surged from 8% to 16% since October 2023, while Coinbase saw a slight increase from 1% over the same period. By March, Bybit overtook Coinbase in trading volume.
- “We are thrilled to see Bybit’s continued growth and recognition in the industry. Our commitment to providing competitive fees, a safe and secure platform, and innovative products like Unified Trading Account has resonated with our users,” said Bybit co-founder and CEO Ben Zhou.
Bybit overtakes Coinbase to become the second-largest cryptocurrency exchange, reflecting its strategic growth and competitive edge in the market.
Bybit Becomes the Second-Largest Exchange
Bybit’s impressive growth can be attributed to several factors, including the successful launch of spot Bitcoin exchange-traded funds in the U.S. and a decline in Binance’s market dominance due to regulatory pressures.
Kaiko’s report indicates that while the overall crypto trading volumes increased, not all exchanges benefited equally. Bybit recorded the most significant gains, whereas Coinbase only saw a minor uptick despite its improved profits and revenues.
Moreover, Binance is not the only exchange experiencing a decline in market share. Platforms such as Upbit and OKX also reported lower trading volumes for unspecified reasons. Binance’s market dominance dropped from 60% to 54% following its $4.3 billion settlement with the U.S. authorities in late 2023.
Low Fees and Market Share Gains
Besides the regulatory challenges faced by Binance, Bybit’s growth has also been fueled by its highly competitive transaction fees and the increasing market shares of Bitcoin (BTC) and Ethereum (ETH) transactions.
Bybit’s transaction fees rank among the lowest in the crypto market, second only to OKX and Binance. In February 2023, Bybit introduced zero fees for USD Coin (USDC) transactions, following similar promotions by other exchanges for assets like TrueUSD (TUSD) and First Digital USD (FDUSD).
Furthermore, Bybit’s BTC and ETH spot trade volume market share soared from 17% to 53% since early 2023. This growth in spot market share is also supported by Bybit’s derivatives market, which has been the second-largest after Binance since 2023.
Conclusion
Bybit’s remarkable ascent to becoming the second-largest crypto exchange illustrates its strategic prowess and competitive advantages. With low fees and a strong market share in BTC and ETH trades, Bybit continues to capitalize on market opportunities amidst the regulatory turbulence faced by competitors like Binance. This growth trajectory suggests a promising future for Bybit as it strengthens its position in the cryptocurrency trading ecosystem.
