Report: Coinbase Falls to Third Place in Global Rankings

Coinbase, a major American crypto exchange, is losing ground in global trading volume due to intense competition as the launch of spot Bitcoin ETFs in the U.S. has shaken the market.

Blockchain analytics firm Kaiko reports that Coinbase is no longer the second-largest in global trading volume. Since October 2023, Coinbase's market share has dropped from 11% to 8%. Meanwhile, Bybit, a rival exchange, now holds about 16% of the global trading volume.

Bybit's growth comes from lowering its trading fees, according to Kaiko. However, that's not the only reason for its success. Bybit also benefited from Binance’s regulatory problems.

Kaiko's data shows that Bybit's volume increase is driven by Bitcoin (BTC) and Ethereum (ETH). These assets' market share on Bybit has grown from 17% to 53% over the past year. On the other hand, Binance has seen more growth in altcoin trading. Although Binance remains the leader with a 54% market share, its Bitcoin and Ethereum volume has dropped from 59% to 43% this year. Kaiko suggests that this change might be due to shifts in risk sentiment, which tend to decrease during bear markets.

Despite Bybit's success, Wall Street is pulling away. Citadel Securities-backed firm Hidden Road stopped offering its clients access to Bybit in late May. This was due to disagreements over Bybit's KYC/AML (Know Your Customer/Anti-Money Laundering) procedures. Bybit has not commented publicly on this issue yet. However, a spokesperson said the platform is “committed to transparency and will provide updates as the review progresses.”