Analyst firm Kaiko reported that cryptocurrency exchange FTX surpassed rival Coinbase in bitcoin trading volume in May.
According to report, Coinbase still boasts a record number of transactions. The discrepancy in trading volume and number of trades indicates that the average dollar value per trade on Coinbase was lower than on FTX – the average trade size on FTX is almost twice that of Coinbase.
Experts also noted the growth of FTX – over the past 18 months, the exchange has increased its market share from 5% to 44%. Other exchanges such as Bitfinex and Bitstamp, on the contrary, lost their shares during this period.
Coinbase managed to stay at about the same level. Experts note that over the past few months, it has been more difficult for small cryptocurrency companies to compete with other players, since the market situation requires a lot of resources.
In addition, the so-called “Coinbase premium” – an indicator showing the difference between hourly Bitcoin prices in BTC/USD on Coinbase and Binance – turned negative in May after being positive for almost six months.
“This metric is sometimes seen as a measure of institutional sentiment, as institutional trading volume accounts for more than 76% of trading activity on Coinbase,” the report says.
According to experts, one of the main reasons for the change in the market structure was the continued volatility of the stablecoin Tether. Earlier, the Executive Director of the UK Financial Conduct Authority (FCA), Sarah Pritchard, stated the need to study the instability in the crypto markets.
Source: Bits
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