According to the latest Kaiko report, FTX surpassed Coinbase in May in terms of bitcoin trading volume. However, the latter platform has registered a higher number of transactions.
Comparison of Coinbase and FTX
Based on the discrepancy between trading volume and transactions, Coinbase had a lower average transaction value than FTX.
The average trade size on FTX (~$2k) is almost double that on Coinbase (~$1k) for btc/USD.
These results are further evidence of FTX’s rapid growth. In just 18 months, the exchange has increased its market share from just 5% to 44%.
Although Coinbase still maintains its position, several smaller exchanges have lost a large slice of the pie. These include Bitfinex, and Bitstamp. In the further part of Kaiko’s study we read:
This trend suggests that the market is consolidating in an environment of prolonged bearish sentiment, and it is more difficult for smaller players to keep up with the competition.
The Coinbase exchange also saw a big increase in trading volume last month. However, it failed to break the all-time records it recorded during the sale on May 19, 2021, when China banned “everything cryptocurrency”.
At that time, bitcoin and ether lost 30% and 40% of their value, respectively. Cryptocurrency exchanges, on the other hand, have experienced technical problems due to the huge demand. Downtime even occurred on Coinbase, Binance, and Kraken – the largest platforms of this type.
Kaiko points out that the Coinbase premium – the difference between the hourly BTC prices for the BTC/USD pair on Coinbase and Binance – turned negative in May, despite the fact that for almost six months, it had remained the positive.
This measure is sometimes seen as an indicator of institutional sentiment. The volume of institutional trading accounts for over 76% of trading activity on Coinbase. Binance, on the other hand, largely drives retail.
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