Coinbase and Bybit Taking Major Market Share After Binance’s $4.3 Billion Settlement

Following Binance’s recent $4.3 billion settlement with U.S. authorities, Coinbase and Bybit have emerged as the primary beneficiaries, gaining substantial market share. Despite losing some ground, Binance maintained liquidity, marking a shift in the cryptocurrency exchange landscape.

Coinbase and Bybit Taking Major Market Share

Coinbase and Bybit have emerged as the primary beneficiaries following Binance’s recent $4 billion settlement with U.S. authorities, according to data from Kaiko.

Perhaps facing significant outflows exceeding $1 billion after the settlement, Binance has demonstrated resilience, maintaining its position in terms of liquidity. 

Kaiko’s research analyst, Riyad Carey, noted a surprising increase in Binance’s market depth post-settlement, signaling the exchange’s ability to weather the storm.

Last week, U.S. authorities, comprising the Department of Justice, Department of the Treasury, and the Commodity Futures Trading Commission, concluded a criminal investigation into Binance. This marked one of the largest corporate settlements in U.S. history, with a staggering $4.3 billion in penalties. 

The settlement also entailed criminal charges against former CEO Changpeng Zhao, who opted to step down as part of a plea deal.

Momentum Shift In Stock Price

Coinbase, already experiencing positive momentum in November, witnessed a remarkable surge in its stock price, soaring by over 75% for the month. 

The fallout from Binance’s settlement added fuel to the fire, propelling Coinbase’s stock to trade at $130.36—a more than 250% increase year-to-date and its highest level in 18 months. 

Notably, Coinbase’s share grew the most outside of U.S. trading hours following the settlement, while OKX gained more at the start of Western Europe’s trading day.

Utilizing bitcoin as a market proxy due to its high non-stablecoin volume, Bybit quickly emerged as the “immediate standout winner” in terms of market share post-Binance settlement. Within 16 out of 24 hours following the deal, Bybit experienced a growth of more than 20%, seizing the opportunity created by Binance’s temporary dip in market share.

As the cryptocurrency exchange landscape transforms, Coinbase and Bybit are positioned as key players, capitalizing on opportunities created by Binance’s recent setback