Fastest News Updates around the World

Binance Gains Ground as Coinbase Slips in Market Share


- Advertisement -

Binance retained the number one position in the market per trading volume. Meanwhile, rival Coinbase has suffered a share decline amid market instability and the Silvergate issues.

Binance has maintained its position as the major cryptocurrency trading platform in terms of trading volume.

Its spot market share among top-tier exchanges rose for the fourth month in February, from 59.4% in January to 61.8% in February. This growth resulted from a 13.7% jump in spot volumes, bringing the total to $540 billion.

Binance’s market share across all exchanges for derivatives also increased by 62.9%, reaching its highest ever monthly market share according to a recent report by CryptoCompare.

Despite the increase in trade volume in the cryptocurrency industry in February, these levels are still 71% below the all-time highs observed in May 2021. Over the course of the month, Binance achieved a record high market share in spot and derivatives exchanges combined. , compare encryption.

Coinbase and Silvergate shares plummet

Coinbase has also had a tough week amid recent market events that have caused a slight decline. The company’s stock valuation also saw a 7.8% drop over the same period despite severing ties with struggling crypto-friendly bank Silvergate.

Silvergate stock also fell more than 60% amid liquidity concerns that led to the collapse of the bank. This decline is relatively high compared to other financial companies, as Signature Bank saw only a 12% drop in stock valuation over the same period.

What’s next for Silvergate?

Many bitcoin exchanges and other cryptocurrency companies rely on the banking services of Silvergate Bank. It may be difficult for them to continue in business because they have lost their banking partner due to bank failure.

Moreover, the effects of a single bank failure are likely to be felt by the financial system as a whole. This could lead to a contraction in the credit market, making it difficult for companies to obtain loans and other sources of financing. The general cryptocurrency market could suffer if investor confidence declines as a result.

As a result of this development, Bitcoin (BTC) and Ethereum (ETH), the two digital assets with the highest market capitalization, are also having a bad day, losing more than 7% and 10% in price in 24 hours, respectively. .

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More