A report published by Kaiko on June 25 clearly reveals this change. According to the report, Bybit has become the world’s 2nd largest crypto exchange in terms of transaction volume. Behind this rise lie some problems experienced by the previous leader, Binance.

One of the keys to Bybit’s success is undoubtedly its steady growth. Bybit, which has increased its market share from 8% to 16% since October 2023, has thus left Coinbase behind. During the same period, Coinbase could only increase its market share by 1% despite increasing profits and revenues. This situation reveals that Bybit is starting to attract increasing attention among investors and the dynamism experienced in transaction volume.

Another important reason for Bybit’s rise is the difficulties Binance has faced recently. Binance, the world’s largest crypto exchange, has lost a significant amount of its market share due to regulatory issues it has experienced in the past. Binance’s 6% decline in market share since October 2023 parallels Bybit’s rise.

As highlighted in the Kaiko report, “One reason for Binance’s decline in dominance may be the exchange’s regulatory struggles.” Binance had to pay a record $4.3 billion fine in 2023 due to problems with US authorities over anti-money laundering (AML) laws. This incident caused great repercussions in the crypto market and damaged Binance’s reputation.

In June of the same year, the US Securities and Exchange Commission (SEC) filed a lawsuit against both Coinbase and Binance for securities law violations. These cases have raised questions about crypto exchanges’ security of user funds and compliance with regulations. Although no concrete evidence was found against Binance in these cases, the incident caused uneasiness in the industry in general.

Bybit, on the other hand, continued its stable growth during this period and managed to gain the trust of investors. Binance’s regulatory issues and facing SEC litigation have created a significant opportunity for Bybit. Investors looking for a more reliable and regulatory-compliant exchange started to turn to Bybit.

Of course, Binance still maintains its position as the world’s largest crypto exchange in terms of trading volume. However, Bybit’s recent rise is reshaping the balance of power in the industry. Bybit’s future moves and Binance’s struggle with regulatory issues stand out as key factors that will determine the developments in crypto exchanges in the coming period.

It is thought that this change may have positive results for the cryptocurrency market. A healthy competitive environment can ensure that stock markets become more reliable and user-friendly and that investors have more options. In terms of the future of the cryptocurrency market, the rise of Bybit and the revival of competition in the sector is considered a positive development.