Ever since the news came out of the crypto exchange Binance settling their dispute with the United States Department of Justice (DOJ) after agreeing to pay $4.3 billion to settle allegations related to breaking Anit Money Laundering (AML) laws, its competitors have seen improvement in their market share numbers.
A recent report from Kaiko Research, a leading cryptocurrency data company that provides market data, analytics, indices, and research to institutional investors and other crypto market participants, has stated that on-chain data shows an increased surge in Coinbase’s market share.
The firm has recently published a report that shows that Coinbase is witnessing a surge in the trading volume on its crypto exchange during the European trading day, which doesn’t include the U.S. trading hours.
The firm stated that: “Coinbase’s share grew the most outside of U.S. trading hours, instead surging in the middle of the trading day in Europe and the beginning of the trading day in eastern Asia.”
Coinbase is not the only change that has experienced an increase in the trading volume on its exchange. Another one of Binance’s competitors, Bybit, is also reportedly seeing significant improvement in its platform activity.
The report stated that: “Bybit is the immediate standout winner, gaining market share in every single hour and growing by more than 20% in 16 out of 24 hours.”
Amidst all the legal drama surrounding the Binance exchange, it still has upheld its liquidity across all cryptocurrencies. According to Kaiko, despite Coinbase’s increase in volume, Binance remains on the top of the list when it comes to liquidity for both Bitcoin and Altcoins.
While many people were skeptical of what the implications would be for Binance and the cryptocurrency world in general, after the incident where the firm was fined heavily and its famous CEO, CZ, was asked to leave the company, many industry leaders believe that this incident has some positive notes in it for the crypto community.
Mike Novogratz of Digital Currency told Cointelegraph in an interview: “I think they’re de-risked in lots of ways. People were worried about dealing with Binance. There’s a lot less to worry about now”.
Coinbase’s stock price surged to an 18-month high in late November, reaching $119.77 on November 27, 2023. This marked the highest closing price for Coinbase since May 2022, when it closed at $114.25. This surge in price is also attributed to the recent legal troubles faced by Binance.
It would be interesting to see whether Binance will see people jumping ships from its platform to its competitor’s platform and how it would restore the faith of the crypto community in the most popular cryptocurrency exchange.
