Bybit Beats Coinbase; Becomes Second Largest Crypto Exchange

On Jun 27, 2024

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Bybit beats Coinbase to be the second largest CEX after Binance.
Binance has lost 6% market share dominance amid regulatory crackdowns.

Dubai-based Bybit cryptocurrency exchange, run by Bybit Fintech Ltd., has filled the market space left by FTX. The collapse of FTX, run by Sam Bankman-Fried, ushered the DeFi industry into the worst crypto winter in trading history.

According to a report by Kaiko, Bybit has bypassed Coinbase to become the second-largest centralized crypto exchange (CEX) after Binance.

Bybit fills the hole left by FTX

Kaiko reports that Bybit has grown 8% in the last 8 months, doubling its dominance to 16%. Bybit’s co-founder and Chief Executive Officer, Ben Zhou, said in an interview, “When FTX collapsed, we saw the opportunity.”

During the same timeframe, Coinbase only managed a 1% increase in market shares. What’s more? Binance has been losing traction amid regulatory woes.

Binance’s dominance has tanked from 60% to 54%, losing 6%. Kaiko writes, “this could indicate that the exchange benefited from Binance’s regulatory troubles.”

What has the surge in Bybit’s market share?

Data shows that Bybit has benefited from the US Spot BTC ETFs launch. Secondly, the exchange’s competitively low fees have driven up its trading volumes. Also, BTC and ETH have driven the exchange’s trading volumes amid market recovery.

In February 2023, Bybit launched zero fees for Circle’s USD (USDC) trading. In addition, soon after FTX’s collapse, Bybit introduced a trading account that enables cross-margin trading using more than 160 tokens.

Ben Zhou adds, “Our commitment to providing competitive fees, a safe and secure platform, and innovative products like Unified Trading Account has resonated with our users.”

Lastly, Bybit’s derivatives offering has supported its growing market share. 2023, the exchange took second place after Binance as a reputable derivative market.

Also Read: Kenya’s Gen Z Embrace Bitcoin Amid Finance Bill ‘24 Protests