Coinbase Thrives as Binance Settles: Surge in Trading and Stock
Coinbase, the cryptocurrency exchange, has experienced a remarkable upswing in trading volume and its COIN stock value following Binance‘s recent regulatory settlement. As the dust settles on Binance’s $4.3 Billion settlement with U.S. authorities, Coinbase emerges as a clear winner.
⚖️Binance's dust up with the DOJ is over, but who came out on top?
This week, we examine the current state of liquidity and exchange market share. ⬇️https://t.co/12M4JMOdUh
In the wake of the Binance saga, Coinbase’s trading volume witnessed an impressive month-on-month increase of 62%. The exchange recorded $31.16 billion in trading volume in October, which skyrocketed to $50.4 billion in November. This surge in trading activity coincided with the resolution of Binance’s legal issues.
The surge did not go unnoticed, as renowned blockchain analytical firm Kaiko verified this trend in their recent report. According to Kaiko, Coinbase and Bybit emerged as the primary beneficiaries of Binance’s regulatory troubles. Interestingly, Coinbase’s growth was particularly prominent outside of the United States trading hours.
Kaiko’s analysts noted, “Coinbase’s share grew the most outside U.S. trading hours (14-22 UTC), instead surging in the middle of the trading day in Europe and the beginning of the trading day in eastern Asia.” This suggests that Coinbase’s compliance-first approach has appealed to traders and investors worldwide.
COIN Stock Rallies Past $130
Coinbase’s COIN stock has been bullish, rallying approximately 73% over the past month. Starting November at around $80, it reached roughly $137 by December 1, signifying an impressive growth pattern. Notably, this rally extends a year-long trend of COIN’s outperformance compared to flagship cryptocurrencies like Bitcoin and Ethereum.
In the last six months alone, COIN’s stock value has soared by over 100%, and year-to-date, it has witnessed an astonishing 260% increase. However, it’s worth acknowledging that COIN shares still trade approximately 60% below their all-time high of $343.
Binance’s recent settlement with U.S. authorities marked a significant development in cryptocurrency. The $4.3 billion settlement resolved allegations related to anti-money laundering, allowing the exchange to move forward with reduced regulatory uncertainties.
Interestingly, the settlement had ripple effects on the market. Kaiko’s research revealed that Coinbase’s market share surged outside U.S. trading hours, emphasising the global appeal of the exchange’s services. Meanwhile, Bybit experienced notable growth in market share throughout the day, showcasing its resilience.
Despite Coinbase’s impressive volume growth, Binance remains the leader in liquidity for Bitcoin and various altcoins. This signifies that while Coinbase has made strides in trading volume, Binance maintains its position as a crucial player in cryptocurrency.
Positive Outlook for the Crypto Industry
Some industry leaders view Binance’s settlement as a positive development for the crypto community. Galaxy Digital’s Mike Novogratz expressed confidence in the reduced risks associated with Binance, stating, “There’s a lot less to worry about now.” This sentiment reflects the belief that regulatory clarity can contribute to a healthier and more stable crypto ecosystem.
In recent news, Coinbase’s shares reached an 18-month high following Binance’s legal challenges. On November 27, Coinbase’s stock closed at $119.77, marking its highest level since May 2022, when it closed at $114.25.
As Coinbase continues to thrive and adapt to the evolving crypto landscape, it remains a focal point for investors and traders seeking stability and growth potential in the digital asset market.
