Bybit has surpassed Coinbase to become the second-largest cryptocurrency exchange in terms of volume, according to a recent report published by Kaiko. It is now only behind Binance, which dominates the market.
Second-Largest Crypto Exchange
The report outlined that Bybit’s market share surged from 8 percent in October 2023 to 16 percent in June 2024, the highest growth rate among the top exchanges. Coinbase also improved its market share by merely a single percentage point, from 7 percent to 8 percent in the same period. The demand on Bybit surpassed the volume handled by Coinbase last March.
However, Binance lost market share, as its dominance declined to 54 percent of the total volume in June, compared to 60 percent last October.
Bybit's spot trading offering has been driven by Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalisation. The share of these two cryptocurrencies on the exchange jumped to 53 percent from merely 17 percent last year.
Market leader Binance, on the other hand, witnessed declining demand for Bitcoin and Ethereum, which dropped to 43 percent from 59 percent a year ago. However, it saw a stronger increase in altcoin volume.
Finance Magnates earlier reported that the number of registered users on Bybit surpassed 30 million recently, as the exchange increased its customer base by 10 million over the last six months.
Low-Fee Is a Factor
Kaiko pointed out that one factor that could have benefited Bybit “could be its competitive fees, which are among the lowest in the industry.” Indeed, the exchange introduced zero-fee trading for Circle’s USD (USDC) stablecoin in February.
“However, other offshore exchanges like Binance and OKX also offer low fees, and many exchanges have ongoing zero-fee promotions and reward campaigns… This suggests that while low fees contribute to Bybit's competitive edge, they are not the only reason for its rise,” the report added.
This article was written by Arnab Shome at www.financemagnates.com.
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