Coinbase dominates Bitcoin trading volumes, as market share grows

By Gaia Lamperti

In the past 30 days, cryptocurrency exchange Coinbase has maintained its dominance in the Bitcoin (BTC) trading market. According to data presented by FinancePR.com, the exchange held a 53% market share after posting over 520 BTC thousand transactions in the past month.

“The data is indicative of Coinbase’s popularity within the crypto-verse, which has continued to grow since its IPO. It tells of the confidence that crypto enthusiasts have in it as an exchange outlet,” commented Edith Reads from FinancePR.com who oversaw the study.

As the appetite for crypto buying seems to have followed into the new year, Coinbase, the only publicly traded crypto exchange in the US, is one company set to greatly benefit from 2022’s expected massive cryptocurrencies buying.

COIN stock is one of the first which investors turn to in order to gain indirect exposure to cryptocurrency, with investors buying its stocks to invest in a company that underpins crypto trading.  Coinbase measures its success in the flow of currency and the number of active users on its platform.

Bitfinex followed second in the amount of BTC traded in the last month. It recorded 155,000 BTC trades, which equals 16% of the period’s trading volumes. In third place was Kraken, which moved 148,000 BTC for a market share of 15%.

Bitstamp and Gemini closed the top five positions. Whereas the former moved 90.900 BTC, the latter transacted 37. 800 of the same. The two accounted for market shares of 9.27% and 3.86%, respectively. Other platforms transacted under 8,000 BTC apiece. Each of them amounted to less than 1% of the market share.

Why Coinbase is so popular

Founded in June 2012, Coinbase is a Delaware-based crypto trading platform that has quickly become a key player in the global crypto market front, commanding about 11%  market share and serving approximately 9 million US customers.

The firm has a current market valuation of $86 billion dollars and became the first crypto exchange to go public in the US last April 2021. Instead of the usual IPO route, Coinbase chose direct listing on NASDAQ, a bold move for the platform which, however, proved successful. Where does this success come from?

Several factors have contributed to Coinbase’s prominence on BTC transactions. First, it has a straightforward onboarding process that, coupled with its easy user interface, makes it attractive to newbies.

Secondly, the platform has established a reputation for trustworthiness. as it stores up to 98% of its holdings in cold wallets and it has never experienced security breaches. Besides, it has insured online customer balances to a tune of $250 thousand per person. It inspires confidence in users that their funds are safe. That’s why 67% of American crypto lovers prefer it.

Additionally, the exchange complies strictly with existing regulations. It has kept on the right side of the law as others have fallen afoul of it, for example providing the IRS with user information. And finally, Coinbase has a popular mobile application with its customer base which enhances the convenience of trading, another bonus for the platform.

This year, if crypto activity continues at the same rate of 2021 (just the last day of the year 10,000 BTC were bought on the platform), Coinbase stock is only going to continue building gains throughout 2022, whether or not crypto is gaining.