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- Coinbase, a prominent cryptocurrency exchange, had a massive number of transactions in May, but is still behind FTX.
- This achievement came after a steady growth over the previous 18 months, where FTX grew from 5% of market share to a massive 44%.
- As of this writing, native token of FTX, FTT, was trading at a market price of $26.44, down by 1.47% during the past 24 hours.
FTX Surpasses Coinbase
FTX, a prominent cryptocurrency exchange surpassed Coinbase, its rival digital asset exchange, with respect to the Bitcoin trading volume during May, despite the latter experiencing a groundbreaking number of trades as per a report.
The discrepancy in sales volumes versus the total trades points out that average dollar price per trade on Coinbase was lesser in comparison to FTX. Report says that the average trade volume of FTX is almost double that of Coinbase with respect to the BTC/USD pair.
This achievement was attained after a gradual growth over the previous 18 months, during which FTX escalated from 5% to 44% of the market share.
Though Coinbase was able to keep their users intact, the report suggests that crypto exchanges such as Bitstamp and Bitfinex, shed a massive slice of their market share.
There was a major spike in sales volume of Coinbase previous month, but wasn’t able to reach its all time high witnessed during the sell-off on 19th May, 2021, amidst the crackdown of China on Bitcoin.
During that time, Ethereum shedded 40% and Bitcoin 30% of their market value, with prominent cryptocurrency exchanges witnessing technical issues amid escalated trading activity.
Negative Coinbase Premium
The report also shed light on the Coinbase premium — the difference among hourly Bitcoin prices on the BTC/USD pair in Binance and Coinbase, which turned negative during May after remaining positive for 6 straight months.
Another cause for the shift in market structure, as per the report, is constant volatility of USDT stablecoin of Tether.
USDT, which got de-pegged for a shorter time span from the greenback previous month, has traded at a persistent, albeit a minor discount to USD since Mid-May, forcing a divergence in these couple of markets of on average around $40 over previous couple of weeks.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
