Among global centralized exchanges, Bybit was found to have benefited the most since the U.S. Bitcoin spot exchange-traded fund (ETF) was launched in January of this year.
What's new: Kaiko, a digital asset data analysis company, said in research released on the 25th that global cryptocurrency trading volume increased significantly with the launch of the U.S. Bitcoin spot ETF, and that Bybit achieved the largest increase in profits.
Background of the issue: Bybit's cryptocurrency spot market share last October was 8%, but in June of this year, eight months later, it was twice that amount, reaching 16%. This means that we have made significant gains not only in terms of increased transaction volume, but also in terms of market share.
Binance, the world's number one exchange, saw its trading volume increase over the same period, but its market share decreased from 60% to 54%. Coinbase, which was the second-largest exchange in spot market share, slightly increased its share from 7% in October last year to 8%. As its market share fell behind Bybit, its ranking fell one level to 3rd.
OKX, which increased its market share to 5% in October last year by focusing its business power on the Web 3.0 sector, slightly increased its market share to 7% in June this year. However, in the derivatives area, the market share, which was up to 25% in early 2023, fell to 15%.
Important point: Kaiko cited low fees as the reason for Bybit's rapid increase in market share. Bybit applies a spot fee of 0.1%, the lowest among global exchanges. Starting in February 2023, we have been holding a fee-free event for USD Coin (USDC) transactions. However, it is difficult to explain this growth through fees alone. This is because Binance and OKX also set spot transaction fees at similar levels.
Kaiko said, “When analyzing spot trading volume by asset, Bitcoin (BTC) and Ethereum (ETH) led the increase in trading volume on Bybit,” adding, “The share of the two coins rose from 17% last year to 53% this year.” pointed out. On the other hand, Binance's ratio decreased from 59% last year to 43% this year. However, altcoin trading volume showed a larger increase.
What happens next: In summary, the global cryptocurrency market share ranking has changed over the past year as a significant portion of Bitcoin and Ethereum spot transactions have shifted to Bybit. Kaiko cited the fine imposed by the U.S. Department of Justice (DOJ) on Binance Exchange and its founder Changpeng Zhao (CZ) at the end of last year as the fundamental reason for this change. If a cryptocurrency exchange is exposed to strong legal sanctions, exchange users may feel anxious and change platforms, and the exchange ranking may also change.
Meanwhile, the market share of Upbit, the domestic cryptocurrency exchange that was the only one listed on the Kaiko global exchange rankings, decreased from 9% in October last year to 4% in June this year.
