According to a recent report released by Kaiko, Bybit has surpassed Coinbase to become the second largest cryptocurrency exchange by trading volume. It now only trails behind the market leader, Binance.
The report outlined how Bybit’s market share skyrocketed from 8% in October 2023 to 16% in June 2024, making it the exchange with the highest growth rate among top exchanges. Coinbase’s market share only increased by one percentage point during the same period, rising from 7% to 8%. The demand for Bybit has exceeded Coinbase’s trading volume from March last year.
However, Binance lost market share, with its dominance dropping from 60% in October last year to 54% in June.
Bitcoin and Ethereum, the two largest cryptocurrencies by market value, have been driving spot trading on Bybit. Their share of trading volume on the exchange surged from 17% last year to 53%.
On the other hand, market leader Binance witnessed a decline in the demand for Bitcoin and Ethereum, dropping from 59% a year ago to 43%. However, it has seen strong growth in altcoin trading volume.
Finance Magnates previously reported that Bybit’s registered user count has surpassed 30 million recently, as the exchange added 10 million customers in the past six months.
Low fees are a factor
Kaiko pointed out that one factor Bybit may benefit from “may be its competitive fees, which are among the lowest in the industry.” In fact, the exchange introduced zero-fee trading for Circle’s USDC stablecoin in February.
The report added: “However, other offshore exchanges such as Binance and OKX also offer low fees, and many exchanges are running zero-fee promotions and reward programs… This suggests that while low fees contribute to Bybit’s competitive advantage, they are not the sole reason for its rise.”
