Market dynamics: bybit and bitget surge as binance and coinbase face challenges

The cryptocurrency market is currently going through a significant shift. Coin prices are currently on the move once again, and investors are looking into whether this surge or drop can last. However, one thing is sure - for many investors, exchanges remain the primary point of entry. And, for anyone looking to capitalize on the market, exchanges will be the perfect way to do so. 

That said, exchanges themselves are also facing an interesting inflexion point at the moment. After months of stagnating performance, there appears to be a shift in the level of trust that investors have in these platforms. As such, volumes and coins held on many of these exchanges are starting to dwindle significantly. 

Let’s take a look at how some of the biggest exchanges have done so far and what to expect from them going forward: 

Market overview

At the moment, the largest centralized exchange remains Binance. The exchange has maintained its position for years, and it doesn’t seem like anything can erase that. 

Binance currently holds a 51.7% share of the exchange market - although its spot trading volume dropped to $235.3 billion in June 2023. That marked a drop of 8.1% month-on-month, with Binance’s volumes dropping considerably since  February 2023 when it reported $217.6 billion.

However, several exchanges have also done well to improve their standing in the market. Most notable is Bitget, whose native token BGB outperformed all other CEX tokens, reaching all-time highs several times within a year. The exchange has done a great deal to weather the storm, thriving in an environment where many of its competitors have struggled. 

All eyes will be on Bitget going forward as investors would want to see if the exchange is able to bolster its position and grow even more. And, as analysts predict, a place in the top 5 won’t be too far again. 

Binance market share

As it always has, Binance is leading the market again. The exchange holds over half of the entire market’s total trading volumes, with its entire market share reaching a low of just 51.7% in the entire quarter. 

Binance’s ability to maintain its lead above other exchanges has been chiefly due to its ability to weather the entire storm from last year. The exchange has maintained its liquidity across the board, assuring customers that its services remain available and reliable regardless of the market’s condition. 

Nevertheless, Biannce’s status in the market has also been its biggest demerit. The exchange lost the most share of its volumes among the biggest brokers, with its trading volume dropping by 52.4% between the first and second quarter of the year. Essentially, Binance’s volumes plummeted by  $823.9 billion in this period. 

 The numbers shown here mark over 304.2% more than the total drop in trading volume of the other nine exchanges, which came in at $270.8 billion during the same period. So, while Binance led the market across the board, its drop in volumes has also been quite considerable. 

Upbit solidifies hold on #2 spot

Upbit is an exchange whose name has continued to grow in the past few years. And right now, the exchange is once again flexing its prowess. 

In the past quarter, the Asicna exchange solidified its place as the second-largest centralized exchange in 2023 Q2, with $117.7 billion in spot trading volumes across the period. Upbit recorded a high of 10.1% in market share in April when it saw an impressive $56.7 billion in volume. 

That said, the platform’s volumes also dipped in line with the market. Overall, Upbit saw a drop of $90.3 billion (-43.4%) in volumes across the past quarter, marking a huge decline for the exchange. 

Across the quarter, Upbit’s share of the market hit a low of 6.0% in May. At this point, the platform’s volumes plummeted to $24.2 billion. The Korean exchange was able to bounce back, but all eyes will be on it going forward - especially as new regulations could take shape in the Asian crypto space. 

Bitget and bybit: Market’s upstarts

It is worth noting that not every exchange saw slips in its volumes and revenues. Upbit and Bitget — two upstart exchanges — continued their growth across the board as they look to capitalize on the impressive overall gains in the market. 

Bybit was the most impressive participant, with its volumes surging by 26.7% across the quarter. The exchange ended June as the fifth-largest exchange in the market, with its share rising to an impressive 5.4%. Considering that it was out of the top 10 previously, this is definitely a huge rise. 

As for Bitget,  the exchange also moved into the top 10. Its market share grew to 2.5%, with its volumes hitting an impressive $1.47 billion. The exchange is now holding the #7 position across exchanges worldwide. In July Token Insight reporter exceptional performance of the exchange amidst the decline in total trading volume on centralized exchanges in Q2. In terms of spot trading, Bitget doubled its share to 6%. Research firm Nansen also reported that Bitget was the only trading platform that increased futures trading volumes after the FTX collapse.

Both exchanges were the only ones among the top 10 to see their volume surge. And, as the market continues to take shape, many investors will be keen to see how they perform.