Bybit has become the world’s second-largest cryptocurrency exchange by trading volume, overtaking the US-based Coinbase.
Bybit CEO Ben Zhou explainedwhich helped the crypto exchange increase its market share from 8% to 16%.
Thanks for the crash, FTX
According to a recent study by Kaiko, Bybit’s share of the cryptocurrency trading market has doubled since October. The exchange is now second only to Binance in terms of spot and derivatives transaction volume.
According to Zhou, the main reason for the platform’s significant growth is the collapse of FTX. Bybit managed to successfully attract former clients of the collapsed crypto platform.
Shortly after the collapse of Sam Bankman-Fried’s crypto empire, Bybit introduced a special trading account that allows users to use over 160 tokens as collateral for margin trading. Users also have the opportunity to use unrealized profits to open new positions.
In addition, Bybit has recently attracted a huge number of users from Europe and Russia. Today, the European region is the largest market for the exchange, accounting for about 30-35% of trading volume. Another 20% comes from the CIS countries, where Russia is the main source of clients.
Market share of different crypto exchanges. Source: Kaiko
Amid geopolitical problems in Russia, Bybit needs to tread carefully. As Ben Zhou noted, the trading platform carefully checks Russian clients and follows “very strict sanctions rules.”
Internal reorganization
In July, a set of requirements for crypto markets (MiCA, or Market in Crypto Assets) will come into force in Europe. Representatives of the Kraken crypto exchange have already stated that they are ready to refuse support for Tether’s USDT stablecoin if it does not comply with the upcoming rules.
Before Kraken, another trading platform, OKX, suspended support for USDT in March of this year, citing regulatory uncertainty.
Meanwhile, Bybit is undergoing an internal reorganization. According to Zhou, MiCA is already pushing Europe out of the picture. He named Brazil, Turkey, and Africa as new sources of growth for the crypto industry.
Earlier this month, the marketplace opened access to Chinese citizens who can prove they live outside the country. Beijing prohibits trading in cryptocurrency, but demand for it is huge.
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Source: Cryptocurrency
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