FTX Overtook Coinbase in Bitcoin Volume for First Time Ever in May: Report – Decrypt

Cryptocurrency Exchange FTX Beats Its Rival coinbase According to Bitcoin According to a recent Kaiko report, trading volumes in May, despite the latter claiming a record number of trades.

The discrepancy in trade volume versus number of trades indicates that the average dollar value per trade on Coinbase was lower than on FTX. “The average trade size on FTX (~$2k) is almost twice that of Coinbase (~$1k) for the BTC-USD pair,” the report said.

The milestone comes after a steady increase over the past 18 months, during which FTX grew from just 5% of the market share to 44%.

Although Coinbase held onto users, Kaiko analysts pointed out that several smaller exchanges, notably Bitfinex and Bitstamp, lost a significant portion of their market share.

“Trends suggest that the market is consolidating amid prolonged bearish sentiment as smaller players are having a tough time keeping up with competition,” the report said.

Coinbase also reported a major spike in trading volume last month, however, failing to surpass the all-time high seen during the May 19, 2021 sell-off amid China’s bitcoin crackdown.

Then, Bitcoin And Ethereum With major crypto exchanges experiencing technical issues amid high trading activity, they lost 30% and 40% of their value respectively.

Those issues include “intermittent downtime” at Coinbase, Binance Ethereum-Related Token Withdrawals Stopped, and Kraken Reporting Users “Connectivity Issues.”

Coinbase Premium turns negative

The report also highlights the so-called Coinbase Premium – the difference between the hourly bitcoin prices on the BTC/USD pair on Coinbase and Binance. After remaining positive for about six months, this premium turned negative in May.

“This metric is sometimes seen as a gauge of institutional sentiment as institutional trading volume accounts for over 76% of trading activity on Coinbase, while Binance operates largely retail,” said Kaiko.

Another reason for the change in market structure, according to the report, is the continued volatility of tie ropeUSDT of stablecoin,

USDT, which was also briefly de-pegged from the greenback last month, has traded steadily since mid-May “despite very little discount to the USD”, causing both these markets to average around $40 over the past two years. deviation has occurred. Week.

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