Bybit has recently ascended to the position of the second-largest cryptocurrency exchange globally, surpassing Coinbase.

source

Bybit's Rise

Bybit, established in 2018 and headquartered in Singapore, has seen remarkable growth, especially in the last year. According to a report by Kaiko , Bybit's market share surged from 8% to 16% between October 2023 and June 2024, effectively positioning it ahead of Coinbase, which only saw a 1% increase in market share during the same period​.

The launch of spot Bitcoin ETFs in the United States played a significant role in boosting global crypto trading volumes, and Bybit capitalized on this opportunity more effectively than its competitors. Additionally, Bybit's competitive fee structure, including zero fees for trading USDC introduced in February 2023, made it an attractive platform for traders​.

Trading Volume and User Base
Bybit's trading volume has seen substantial growth. As of the latest reports, Bybit's 24-hour trading volume was approximately $3.52 billion. The exchange boasts over 10 million users, reflecting its extensive reach and popularity within the crypto trading community​​.

Exchange Reserves and Security

Bybit holds substantial reserves, amounting to around $8.42 billion. This robust reserve base not only provides a safety net for its operations but also enhances user confidence in the platform's stability and security​​.

2021-2023
The cryptocurrency exchange landscape has undergone significant changes over the past few years. In 2021, Binance dominated the market with over 60% market share, followed by Coinbase and a mix of other exchanges like FTX , Kraken, Bitfinex, and Huobi. However, regulatory pressures and strategic missteps have reshaped this hierarchy.

2021-2022
During 2021 and 2022, Binance maintained its lead despite facing increasing regulatory scrutiny worldwide. Coinbase held the second position, largely due to its strong brand presence and user-friendly platform. Other exchanges like Kraken and Huobi fluctuated in market share due to varying regulatory and operational challenges.

2023-Present

By late 2023 and into 2024, Binance's market share declined from 60% to 54% following its $4.3 billion settlement with U.S. authorities​ . This allowed Bybit, with its aggressive growth strategies and low-fee model, to climb the ranks swiftly. Bybit's market share increased significantly, thanks in part to its successful navigation of the regulatory environment and strategic moves like launching zero-fee trading for USDC​​.

Coinbase, despite increased profits and revenues, could not keep pace with Bybit's growth, managing only a slight increase in market share. This shift underscores the competitive nature of the crypto exchange market, where innovation, fee structures, and regulatory navigation play critical roles.

Top 10 Crypto Exchanges: 2021 vs. 2024
2021 Rankings:

Binance
Coinbase
FTX
Kraken
Huobi
Bitfinex
OKX
KuCoin
Bittrex
Bitstamp

2024 Rankings:

Binance
Bybit
Coinbase
OKX
Kraken
Bitfinex
KuCoin
Bitstamp
Upbit
Huobi

The Obvious Change

FTX was a major player in the crypto exchange market in 2021, known for its wide range of products, including derivatives, options, and leveraged tokens. It rapidly gained popularity due to its innovative offerings and strategic marketing, which included high-profile sports sponsorships.
In late 2022, it was reported that the exchange encountered severe liquidity issues and regulatory investigations, leading to bankruptcy and the lowest point of the crypto bear market.

Factors Contributing to Bybit's Rise

• Having a wide range of alt coins to trade
• Easy to Use Platform
• Bybit Card
• Launchpool and Launchpad products that offers high apr
• Absence of FUD like other exchanges ( Binance , Kucoin , Mexc , Huobi , Kraken )

Posted Using InLeo Alpha