Coinbase Lost a Significant Part of its Market Share

According to a report by Kaiko dated September 9, Coinbase has experienced a significant decline in its market share as smaller exchanges gain ground.

Earlier this year, Coinbase held over 50% of the crypto market in the U.S., reaching 55% in March. However, by the beginning of September, its share had fallen to 41%, a sharp drop from 53% in June.

A major beneficiary of this shift is Bullish, whose market share doubled from 17% to 33% during the same period. Unlike Coinbase, which focuses on retail investors, Bullish is targeted at institutional clients.

According to Kaiko, the top three crypto exchanges in the U.S. now control nearly 90% of the market, compared to 66% in April 2021. In contrast, the share of smaller exchanges has dropped from 34% to just 11%.

This change is attributed to stricter regulations, lower trading activity during the bear market of 2022-2023, and the dominance of large players like Coinbase and Kraken in institutional trading. The collapse of FTX in 2022 and regulatory actions against Binance.US further accelerated this trend.