Dubai-based crypto exchange Bybit has overtaken Coinbase and risen to second place globally by trading volume, largely targeting former customers of the defunct FTX platform as well as users in Europe and Russia.
Crypto Exchange Bybit Rises in the Gap Left by FTX
Bybit's growth has been driven by offering services that allow digital tokens to be used as collateral for margin trading, filling the gap left by the collapse of FTX.
“When FTX crashed, we saw the opportunity,” co-founder and CEO Ben Zhou highlighted this strategy in a recent interview.
According to Kaiko data, Bybit's share in transaction volume has doubled since October, reaching 16%, surpassing the US leader Coinbase.
The platform currently ranks second behind Binance in both spot and derivatives trading.
Crypto exchanges have benefited from a significant recovery in Bitcoin's price over the past year, fueled by the launch of dedicated US exchange-traded funds.
This recovery follows a tough bear market and FTX's high-profile crash in 2022.
Shortly after FTX's collapse, Bybit introduced a trading account that allowed cross-margin trading with more than 160 tokens.
Users can also take advantage of unrealized profits to open new positions. “This was something no one else had,” Zhou said.
*This is not investment advice.