Bybit has surpassed Coinbase to become the world’s second largest exchange.
After increased trading, Bybit became the second largest centralized exchange (CEX) by trading volume, according to report June 25 of Kaiko.
“Since October, the exchange’s market share has increased from 8% to 16%, surpassing Coinbase in March to become the second largest exchange after Binance.”
CEX market share by volume | Source: Kaiko
During the same period, Coinbase’s market share increased by only 1% despite reporting improved profits and revenue.
Bybit’s rising market share can partly be attributed to Binance’s past legal problems, which caused the world’s largest exchange to lose some of its industry dominance.
Bybit attracts attention as Binance loses market share
As Bybit’s market share increased by more than 8% in the past 8 months, Binance lost its appeal.
Since October, Binance’s dominance has dropped from 60% to 54% (-6%), which may be partly due to the exchange’s legal struggles. According to Kaiko:
“This indicates Bybit exchange benefited from Binance’s regulatory troubles.”
On November 21, 2023, US officials announced a $4.3 billion settlement with Binance for anti-money laundering violations, marking one of the most serious criminal fines in American history.
In June 2023, the SEC sued Coinbase and Binance for alleged securities violations. In the lawsuit against Binance, the SEC accused the company and its founder Changpeng Zhao of embezzling billions of dollars in user funds.
Despite initial allegations, there was no evidence of misappropriation of user funds. To date, Binance is still the world’s largest exchange by trading volume.
Will free USDC trading increase Bybit’s market share?
Similar to other exchanges, Bybit introduced zero-fee trading for Circle’s USDC stablecoin in February 2023, which may have contributed to increased trading volumes.
Overall, Bybit’s average fees are on par with those offered by exchanges Binance and OKX. This is one of the lowest fees in the industry, according to Kaiko.
CEX transaction fees | Source: Kaiko
According to Ben Zhou, co-founder and CEO of Bybit, the exchange will continue to strive for cheap and competitive fees.
“Our commitment to providing competitive fees, a safe and secure platform, and innovative products like the Unified Trading Account has resonated with users.”
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According to Cointelegraph
