Crypto news

FTX overtook Coinbase in terms of trading volume

Analyst firm Kaiko reported that cryptocurrency exchange FTX surpassed its rival Coinbase in bitcoin trading volume in May.

According to the report, Coinbase still boasts a record number of trades. The discrepancy in trade 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 nearly twice as high as on Coinbase.

Experts also noted FTX’s growth – the exchange has increased its market share from 5% to 44% in the past 18 months. Other exchanges, such as Bitfinex and Bitstamp, on the contrary, lost their shares during this period.

Coinbase managed to hold approximately the same level.

Experts note that over the past few months, small cryptocurrency companies find it more difficult to compete with other players, as 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 the BTC/USD pair on Coinbase and Binance – turned negative in May, while it had been positive for nearly six months.

“This metric is sometimes seen as an indicator of institutional sentiment because institutional trading volume accounts for more than 76% of trading activity on Coinbase,” the report said.

According to experts, one of the main reasons for the change in market structure was the continued volatility of Tether steiblocoin.

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