Bybit Surpasses Coinbase in Trading Volume Boosted by Bitcoin ETFs and Low Fees
Bybit has surpassed Coinbase to become the world's second-largest cryptocurrency exchange by trading volume, according to data from analytics firm Kaiko. Since October 2023, Bybit's market share has surged from 8% to 16%, while Coinbase's share has only increased by 1%.
Kaiko attributes this growth to the launch of spot Bitcoin ETFs in the US in January 2024, which significantly boosted overall crypto trading volumes. Bybit's competitive fee structure, with one of the lowest fee scales in the industry, has also been a key factor in its market share gains.
Bybit's spot market share of Bitcoin and Ethereum has grown rapidly, with Bitcoin's share jumping from 10% to 31% and Ethereum rising from 7% to 22% from 2023 to 2024. In the derivatives market, Bybit has solidified its position as the second-largest exchange after Binance.
While low fees contribute to Bybit's competitive edge, other exchanges like Binance and OKX also offer similar low fees and zero-fee promotions. Bybit's growth suggests that it has successfully drawn traders away from its competitors through its combination of low fees and a rapidly growing derivatives offering.