Despite the delisting of Binance.US, Coinbase has surprisingly failed to gain a larger share of the US cryptocurrency market. A recent report from Kaiko highlights Coinbase’s stagnant market share, which has hovered around 55% since May. On the other hand, rivals such as Kraken and LMAX Digital are quickly reclaiming the space left open by Binance.US, and Bitstamp is also marking an increase in its US presence amid growing legal complexities.
Coinbase stalls as Kraken advances
Coinbase, recognized as the top U.S. cryptocurrency exchange by trading volume, appears impassive in its leadership position, according to data from Kaiko. Kraken, slightly behind, is moving forward, gradually taking over Coinbase’s market dominance. According to the data, Coinbase’s 24-hour trading volume is approximately $2.4 billion, significantly lower than Binance’s $9.34 billion in the global spot market.
Regulatory hurdles cast a shadow
On the contrary, to compound the challenges, the US crypto landscape is navigating through a fog of regulatory uncertainty. The SEC and CFTC maintain close scrutiny, especially with allegations of securities regulation violations. Notably, the SEC took action against Binance and its US entity along with its founder, Changpeng Zhao. They are accused of secretly facilitating transactions for US customers against their policies. Coinbase has also felt the pressure of the regulator, with accusations of operating without proper records.
Despite these regulatory storms, there is a glimmer of optimism for investors. The possible approval of a Bitcoin spot ETF could catapult COIN shares to new heights as it would generate enormous enthusiasm for the cryptocurrency and Coinbase’s revenue would increase.
Furthermore, the company’s path to profitability is promising, as reflected by its near-flat profits in the third quarter of 2023. With an unexpected increase in profits and a slight increase in after-hours trading, Coinbase’s stock price is currently at $91.96, reflecting a 5% increase.