Cryptocurrency exchange ByBit has been gaining attention recently due to its growing dominance in the spot market. ByBit is on track to be the second-largest spot exchange by trading volume for the fifth consecutive month, and has recorded its highest market share ever, accounting for 10.6% of the exchange’s total trading volume. In September 2022, its share was just 3%.
ByBit’s new dominance was achieved through a steady upward trend, with its market dominance beginning in mid-2023.
ByBit CEO Ben Zhou attributed ByBit’s growth to providing an exchange to former FTX customers, allowing users to trade cryptocurrencies on margin, and serving similar geographies.
ByBit has had other recent wins, too: it added support for the ByBit debit card on Apple Pay, and earlier this month it made it possible for Chinese users living abroad to open accounts.
But not everything has been rosy for ByBit since the FTX collapse. Like other exchanges, the exchange has faced regulatory issues and withdrew from both the Canadian and UK markets last year. However, Zhou has mentioned expansion beyond Europe, highlighting Brazil, Turkey, and Africa as future growth areas.
ByBit has consistently outpaced its larger Asia-focused peers like Gate.io, HTX, and OKX over the past few months, but there is still a significant gap between ByBit and Binance. Binance’s market share has been under some pressure as the exchange deals with the aftermath of a significant settlement with the US Department of Justice and a CEO change. Spot volume share has fallen to 38.14% from 45.43% in March.
Immediately after FTX’s collapse, many predicted that various exchanges would benefit from its user base. ByBit has seen the largest growth in dominance among spot exchanges since FTX’s closure in November 2022. While ByBit is unlikely to become the most dominant exchange by spot volume, it appears to be emerging as a major winner in the aftermath of FTX.
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