Following Binance‘s multi-billion dollar deal with US institutions, Coinbase’s market share has significantly increased according to on-chain data. Bybit exchange is one of the biggest winners of Binance’s market share decline.
“Binance’s Agreement with DoJ is Positive for the Crypto World”
On November 21, Binance reached a $4.3 billion agreement with the US Department of Justice (DoJ) regarding money laundering investigations. Despite the agreement, research firm Kaiko Research reported that Binance’s market share has declined due to legal issues, but other cryptocurrency exchanges have seen an increase in market share.
Kaiko Research also stated that Coinbase has experienced a significant increase in trading volume, particularly during non-US trading hours. Additionally, Coinbase’s shares reached their highest level in the past 18 months following Binance’s legal problems.
Furthermore, Kaiko Research highlighted that Bybit, another cryptocurrency exchange, has experienced notable changes in market share. According to the research firm, Bybit has quickly become a significant winner, increasing its market share by over 20% in 16 out of 24 hours.
Despite facing legal issues and a decline in market share, Binance has managed to maintain its liquidity in all cryptocurrencies, according to Kaiko Research. The report stated that although Coinbase’s market share has increased, Binance remains the liquidity leader for both BTC and altcoins.
Meanwhile, some industry leaders view Binance’s agreement with the DoJ as a positive development for the crypto world. Mike Novogratz, the founder and CEO of Galaxy Digital, believes that the recent legal action against Binance is a positive development for the cryptocurrency industry.
Novogratz said, “I think they made themselves a lot less risky in many ways. People were worried about dealing with Binance. Now there is much less to worry about.”
- Binance’s market share has declined, while Coinbase and Bybit have seen significant increases.
- Coinbase experienced a notable increase in trading volume, particularly during non-US trading hours.
- Binance’s agreement with the DoJ is viewed as a positive development for the crypto world.