According to a recent report by Kaiko, Bybit has surpassed Coinbase to become the second largest cryptocurrency exchange by trading volume, trailing only behind market leader Binance.
The report outlines how Bybit’s market share has skyrocketed from 8% in October 2023 to 16% in June 2024, 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%. Demand for Bybit has exceeded Coinbase’s trading volume from March of last year.
However, Binance has lost market share, with its dominance dropping from 60% in October of last year to 54% in June.
Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have been driving spot trading on Bybit. Their combined share on the exchange has jumped from 17% last year to 53%.
On the other hand, market leader Binance has seen a decrease in demand for Bitcoin and Ethereum, dropping from 59% a year ago to 43%. However, it has witnessed strong growth in altcoin trading volume.
Earlier, Finance Magnates reported that Bybit’s registered user base has surpassed 30 million, as the exchange has added 10 million new customers in the past six months.
Low fees are a factor
Kaiko points out that one factor that Bybit may benefit from “is 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 adds, “However, other offshore exchanges like 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.”