Coinbase Surges in Market Share Following Binance Settlement
Last week, cryptocurrency exchange Binance reached a substantial multi-billion-dollar settlement with United States regulators, leading to a surge in Coinbase’s market share. On-chain data analytics firm Kaiko Research reported that Coinbase saw an uptick in trading volume during European trading hours. Meanwhile, Bybit experienced significant growth throughout the day.
The settlement between Binance and the United States Department of Justice (DoJ) amounted to $4.3 billion and resolved allegations related to anti-money laundering. However, these legal challenges have had a positive impact on other crypto exchanges.
Kaiko Research recently published a report indicating that Coinbase’s market share grew the most outside of U.S. trading hours. The exchange saw a surge in trading volume during the middle of the trading day in Europe and the beginning of the trading day in eastern Asia.
Bybit, on the other hand, experienced market share growth in every hour of the day. The report stated that Bybit gained more than 20% market share in 16 out of 24 hours.
Despite the increase in Coinbase’s market share, Binance has maintained its liquidity across all cryptocurrencies, even in the face of legal challenges. The report from Kaiko Research declared that Binance remains the leader in liquidity for both Bitcoin (BTC) and altcoins.
Industry leaders have expressed their belief that Binance settling with the DoJ is positive for the crypto community. Mike Novogratz, the CEO of Galaxy Digital, stated that Binance has become less risky to deal with following the settlement.
In recent news, shares of Coinbase have reached an 18-month high following Binance’s legal troubles. On November 27, Coinbase closed at $119.77, its highest value since May 2022.
Overall, the settlement between Binance and the DoJ has had a ripple effect on the crypto market, with Coinbase experiencing increased market share and Coinbase’s shares reaching new highs.