Following Binance’s recent $4.3 billion settlement with US authorities, Coinbase and Bybit emerged as major beneficiaries, gaining significant market share. Despite losing some ground, Binance maintained liquidity and brought about change in the cryptocurrency exchange landscape.
Coinbase and Bybit take major market share
Coinbase and Bybit have emerged as major beneficiaries following Binance’s recent $4 billion settlement with U.S. authorities, according to data from Kaiko.
Although it may have faced significant outflows in excess of $1 billion following the settlement, Binance has shown resilience by maintaining its position in terms of liquidity.
Riyad Carey, research analyst at Kaiko, noted the surprising increase in Binance’s market depth following the settlement, suggesting the exchange’s ability to weather the storm.
Last week, U.S. authorities comprised of the Justice Department, Treasury Department, and Commodity Futures Trading Commission concluded a criminal investigation into Binance. It was one of the largest corporate settlements in U.S. history, with fines reaching $4.3 billion.
The settlement also entailed criminal charges against former CEO Changpeng Zhao, who decided to resign as part of a plea deal.
Changes in stock price momentum
Already experiencing positive momentum in November, Coinbase has seen a notable surge in its stock price, soaring more than 75% during the month.
The aftermath of Binance’s agreement further fueled the fire, and Coinbase’s stock price was trading at $130.36. This is an increase of more than 250% compared to the previous year and is the highest level in 18 months.
In particular, Coinbase’s share rose the most after settlement outside of US trading hours, while OKX rose more during the opening day of trading in Western Europe.
Bybit, which uses Bitcoin as a market proxy due to its high non-stablecoin trading volume, quickly emerged as an “immediately noticeable winner” in terms of market share after Binance payments. Within 16 out of 24 hours of trading, Bybit experienced growth of over 20% and seized the opportunity created by Binance’s temporary market share decline.
As the cryptocurrency exchange landscape changes, Coinbase and Bybit have positioned themselves as key players, capitalizing on the opportunities created by Binance’s recent setback.