Bybit Surpasses Coinbase in Trading Volume, Emerges as Second-Largest Crypto Exchange

• The cryptocurrency sector witnessed a major milestone as Bybit, the Singapore-based crypto exchange, has surpassed Coinbase, a San Francisco-based crypto exchange, in trading volume.
• This achievement underscores Bybit’s rapid growth and expanding influence within the global digital asset market, as it continues to attract a diverse user base.
• Bybit’s rise comes in a highly competitive and ever-evolving landscape of cryptocurrency exchanges, where platforms constantly innovate to secure market dominance.

Bybit overtakes Coinbase to become the second-largest crypto exchange by trading volume, showcasing its rapid growth and strategic advancements in the digital asset sector.

Bybit’s Market Share Expansion

Recent market data positions Bybit just behind Binance, the world’s largest cryptocurrency exchange, as its trading volume eclipses that of Coinbase. This underscores Bybit’s successful scaling efforts and enhancements, catering to both retail and institutional traders.

Kaiko’s data reveals that since October 2023, Bybit’s market share has jumped from 8% to 16%, outpacing Coinbase’s modest increase of 1% during the same period. Despite Binance settling with US regulators in late 2023, its dominance has dipped from 60% to 54% since October.

The surge in Bybit’s trading volume is attributed to various factors, including the introduction of new Bitcoin Exchange-Traded Funds (ETFs) and some of the lowest gas fees in the industry. Bybit has adopted a user-centric approach, providing an extensive range of cryptocurrencies, competitive trading fees, and innovative tools.

In February 2023, Bybit launched zero-fee trading for USDC, while Binance focused on promoting TUSD and FDUSD over the past year. Although Bybit’s low fees provide a competitive edge, they are not the only driver of its growth.

Kaiko’s analysis of spot trade volumes by asset indicates that Ethereum and Bitcoin have notably contributed to Bybit’s volume increase, with their market shares rising from 17% to 53% since last year.

Growth in Derivatives Trading

Bybit has proactively expanded its services to include a variety of derivatives trading options and advanced trading tools, appealing to a global audience. This initiative has significantly boosted its market presence.

According to Kaiko, the exchange’s enhancing derivatives market offerings have played a crucial role in its expanding spot market share. The derivative market on Bybit experienced significant growth in 2023, solidifying its status as the second-largest platform following Binance.

The exchange displayed notable growth in H1 2023. Despite its market share of open interest remaining stable since October, the trend suggests that Binance’s regulatory challenges may have indirectly fueled Bybit’s growth.

Conclusion

In summation, Bybit’s recent achievements highlight its rapid expansion and strategic maneuvers within the cryptocurrency sector. As it continues to innovate and adapt, Bybit is well-positioned to further cement its standing in the competitive digital asset market. The developments at Bybit also underline the dynamic nature of the crypto exchange landscape, hinting at more shifts and advancements in the future.