- Coinbase and Bybit have gained market share from Binance during its recent legal issues with US regulators, according to a report by Kaiko. Coinbase saw spikes in trading volume from European users while Bybit grew over 20% in market share across most trading hours.
- Despite losing some volume share, Binance still leads all exchanges in overall liquidity and depth in Bitcoin and altcoins trading.
- Some industry leaders believe Binance’s legal settlements will benefit the broader crypto ecosystem by reducing regulatory uncertainty. Coinbase’s share price also rose to an 18-month high following the settlements.
Recent legal settlements between major crypto exchange Binance and US regulators have led to shifts in market share among competing platforms. According to a new report, Coinbase and Bybit are seeing increased volumes during this period of uncertainty for Binance.
Coinbase Sees Growth in Europe
According to research by on-chain analytics firm Kaiko, Coinbase has gained significant market share during European trading hours. The exchange’s trading volumes spiked between 14:00-22:00 UTC, overlapping with the busiest parts of the trading day in Europe.
Bybit Also Benefits
The Kaiko research found that Bybit, another major crypto exchange, grew over 20% in market share during 16 out of 24 hours in the day. Bybit saw growth in share across all time periods, indicating it may be attracting new users during Binance’s legal issues.
Binance Maintains Liquidity
Despite shifts in volume share, Binance still leads all exchanges in overall liquidity according to Kaiko. The firm maintains deep liquidity in both Bitcoin and altcoins, despite its diminished trading volumes.
Industry Leaders See Positives
Some crypto industry leaders believe Binance’s settlements with US regulators will benefit the broader ecosystem. Investor Mike Novogratz said the agreements reduce regulatory uncertainty and risks associated with Binance.
Shares in Coinbase also rose to an 18-month high following news of the settlements, indicating increased confidence in compliance-focused exchanges.
As Binance Takes a Blow, Others Gain Growth
The crypto exchange market continues to evolve in response to increased regulatory scrutiny and enforcement actions. As Binance resolves its legal issues in the US, rivals like Coinbase and Bybit are gaining market share and working to attract new users. But Binance remains a dominant force globally in trading volumes across cryptocurrencies.
