Bybit Surpasses Coinbase as World’s Second-Largest Crypto Exchange
Bybit cryptocurrency exchange surpassed Coinbase to become the world’s second-largest cryptocurrency exchange by volume after Binance, according to a June report from crypto research firm Kaiko.
The report highlights Bybit’s impressive growth after launching spot Bitcoin ETFs in the US, positioning it as a major player in the global crypto trading ecosystem.
Bybit’s market share has skyrocketed from 8% to 16%, overtaking Coinbase in March to become the second-largest exchange after Binance. While Coinbase has reported improved revenue and profits, its global market share only increased by 1% during the same period.
Additionally, Binance, despite reaching a deal with US regulators in late 2023 to potentially lessen its regulatory risks, saw its dominance slip from 60% to 54%. Smaller offshore markets like Upbit also experienced declines.
According to Kaiko, the driving force behind Bybit’s success seems to be its highly competitive fee structure.
“One explanation could be its competitive fees, among the lowest in the industry,” the report suggests.
Bybit introduced zero fees for USDC trading in February 2023, contributing to its competitive edge.
A deeper analysis of spot trade volumes reveals that Bybit’s surge is largely due to increased Bitcoin (BTC) and Ethereum (ETH) trading. The combined market share of these assets on Bybit has jumped from 17% to 53% over the past year.
In contrast, Binance has seen a decline in BTC and ETH volumes, with their share dropping to 43% this year from 59% a year ago. Instead, Binance has experienced a rise in altcoin trading, which is more susceptible to market volatility and typically declines during bear markets.
Bybit’s ascent in the spot market is complemented by its
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