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.

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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.

Kosta Gushterov