FTX Surpasses Coinbase to Become the 2nd Biggest Crypto Exchange

    FTX is now placing in the 2nd spot of the biggest centralized crypto exchanges, which previously was Coinbase position. 

    The market-dominating exchange is still Binance, which holds 64.1% of the market share, followed by FTX (10.8%) and Coinbase (9.6%) statistically on a monthly report.

    The next big players are Kraken (3.7%), Bitfinex (2.6%), and LMAX Digital (2.6%). Overall, crypto trading volume rose 19.6% in May, totaling $830.4 billion.

    Source: The Block

    FTX is overperforming Coinbase in terms of BTC/USDT trading volume with a 13.1% market share compared to 12.9% of Coinbase.

    This is not a too surprising result considering the business situation between FTX and Coinbase since the beginning of 2022. Coinbase lost $430 million in Q1/2022, causing COIN’s price to plummet, falling more than 70% in 2022 and more than 80% from its ATH at $430 in April 2021.

    Besides, the exchange’s quality has shown significant backward. The beta version of Coinbase NFT marketplace was not successful as expected. Even the launch of its new Web3 application, which allows users to easily access the Ethereum dApp right on the exchange’s platform, also has not been received widely in the community. 

    On the other hand, despite setting an ambitious strategy to expand its mainstream to every country, Coinbase has made a big mistake, in which it had not considered the legality carefully before stepping into the Indian market. Consequently, the exchange had to stop operating in the second-most populous country under pressure from Central Bank after just 3 days of launch. 

    Meanwhile, it is quite opposite for FTX. FTX CEO, Sam Bankman-Fried, has been focusing mainly on the legal field to enhance the exchange’s position in the international market. This direction has brought FTX many unexpected successes.

    Goldman Sachs, one of the biggest financial empires in the US, has considered a potential partnership with FTX. Moreover, FTX has also established a solid bridge with the traditional financial market. First move is the purchase of 7.6% stake in Robinhood. Next is the rolling out of zero-commission stock trading. Then is the opening of a secure payment gateway with stablecoins.

    Sam Bankman-Fried also confidently affirmed that FTX is willing to spend billions of dollars to make further acquisitions to expand the scale of the exchange.

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