FTX Surpassed Coinbase In BTC Volume For The First Time Since May

FTX surpassed coinbase in BTC volume for the first time since May processing a record-high number of transactions as we can see more today In our latest cryptocurrency news.

The discrepancy in trading volume versus the number of trades shows that the average dollar value per trade on Coinbase was much lower than the one on FTX. The report shows FTX surpassed Coinbase:

 “Average trade size on FTX (~$2k) is nearly double that on Coinbase (~$1k) for the BTC-USD pair.”

The milestone came after steady growth in the past 18 months during which FTX grew from 5% of the market share to 44%. though Coinbase maintained the hold on its users, Kaiko analysts reported that a few smaller exhcnages like Bitstamp and Bitfinex shed a huge slice of their market share. The report added:

“The trend suggests that the market is consolidating amid prolonged bearish sentiment with smaller players having a harder time keeping up with the competition.”

Coinbase reported a huge spike in trade volumes last month but failed to surpass the ATH that was seen during the sell-off in May 2021 when the China crackdown on BTC happened. Bitcoin and Ethereum lost 30% and 40% of their value with major exchanges experiencing technical issues and high trading activity. The issues included intermittent downtime on Coinbase, Binance halting ETH-related token withdrawals, and Kraken reporting user connectivity issues. The report shows that the Coinbase premium or difference between hourly BTC prices on the BTC/USD pair on Coinbase and binance turned negative in May after being positive for up to six months. Kaiko added:

‘This metric is sometimes seen as a gauge of institutional sentiment because institutional trading volume accounts for over 76% of trading activity on Coinbase, while Binance is largely retail-driven.”

Another reason for the move in market structure is the continued volatility of the Tether USDT stablecoin. USDT briefly de-pegged from the dollar and traded at a persistent discount to the USD since May which forced a divergence in the markets of an average of $40 in the past two weeks.

As recently reported, FTX US launched stock trading and will allow users to fund their accounts with USDC. The customers will be able to buy stocks and ETFs in the crypto app. The offering is being rolled out to select customers from a waitlist and the exchange even announced that customers can trade stocks and ETFs and making it the first native exchange to offer equities on the platform. The new product that the company was testing for months is dubbed FTX Stocks and will allow users to fund their accounts with the USDC Stablecoin but also bank transfers.