Binance had a tough end of November as its CEO and co-founder Changpeng Zhao was forced to resign from his position after he was found guilty of failing to enforce proper AML rules at his company. The effects of these developments on the stock market are now becoming clearer. However, despite everything, the stock market maintains its leadership in terms of market share.
Kaiko: These 2 exchanges gained while Binance declined!
As you follow on Kriptokoin.com, Binance agreed to pay a penalty of over 4 billion dollars to the US authorities. The decision triggered immediate price impacts on the entire industry, especially BNB. Besides this, it also damaged investors’ confidence in the stock market. As expected, several platforms have emerged as beneficiaries of these developments.
Initial reports after the deal indicate that the lion’s share of assets previously stored on the Binance exchange have been transferred to its US rival Coinbase Pro. In his latest research on the subject, Kaiko confirms this, saying that Coinbase’s market share increased by 34%. However, another exchange benefited even more from the deal: Bybit. The crypto exchange increased its market share by 50% within days. Kaiko said, “Bybit gained market share with each hour. Thus, it became an immediate winner, growing by more than 20% in 16 of 24 hours.” says.
Balances of Crypto Exchanges After Binance Settlement. Source: KaikoBinance’s dominance over its rivals continues
However, Kaiko notes that despite Coinbase’s rise, the Binance exchange “remains the leader in liquidity for both BTC and altcoins.” CryptoQuant also stated this earlier this week. The on-chain data provider and research source explained that Binance saw a 20% decrease in its reserves following the settlement, with BTC stored on the exchange dropping to around 500,000 from 634,000 in May. However, according to Kaiko, Binance’s dominance over its competitors continues. Kaiko says indicators are strong for a few altcoins like BTC and Dogecoin. In this regard, Kaiko analysts make the following assessment:
Meanwhile, DOGE shows why Binance is still on top. Over the past few weeks, their spreads have never exceeded 1.5 bps; Bybit’s base spread is also similar. But it frequently goes above 2 bps. Coinbase’s spread is higher than its competitors in both cases and has yet to show signs of closing the gap.
Coinbase (COIN) performance
Last week, Coinbase witnessed its stock price soar. The stock reached a peak not seen in more than a year. However, when we look more closely, it is possible to notice a certain increase that started after the Binance agreement. COIN was trading just under $100 the week before speculation about Binance’s potential deal came to light. Shares began rising amid news that CZ would resign. When the rumors became reality, it really happened.
COIN’s prices jumped to approximately $135 as of Friday, December 1. This means that shares of the largest US-based crypto exchange have increased by approximately 35% in the past two weeks following the Binance deal.
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