Binance Fallout: Bybit Emerges as Immediate Winner in Crypto Exchanges’ Shakeup

    Binance faces turbulence as CEO steps down amidst AML rule violations. Coinbase Pro and Bybit emerge as major beneficiaries, gaining significant market share. Despite challenges, Binance maintains liquidity leadership. Coinbase’s stock (COIN) surges by 35% post-settlement, signaling a shift in the crypto exchange landscape.

    In a recent turn of events, Binance, one of the leading crypto exchanges, experienced a tumultuous end to November. CEO Changpeng Zhao’s resignation, following guilty pleas related to AML rule lapses, sent shockwaves across the industry. Binance agreed to pay over $4 billion in fines, impacting investor confidence and prompting a reshuffling of assets.

    Beneficiaries Emerge Amidst Chaos

    Coinbase Pro swiftly seized an opportunity, gaining a 34% increase in market share as investors migrated from Binance. Notably, Bybit emerged as the standout winner, witnessing a remarkable 50% surge in market share within days of the settlement. Kaiko’s research highlighted Bybit’s immediate gains, growing by more than 20% in 16 out of 24 hours.

    Binance’s Resilience and Coinbase’s Surge

    Despite setbacks, Binance maintains its position as a liquidity leader, particularly for BTC and altcoins. While Coinbase Pro’s market share rises, Binance’s dominance in liquidity remains strong, as indicated by on-chain data providers. Meanwhile, Coinbase’s stock (COIN) experienced a significant uptick, surging by approximately 35% within two weeks of the Binance settlement, reaching levels not seen in over a year.

    The fallout from Binance’s challenges has reshaped the crypto exchange landscape, with Coinbase Pro and Bybit emerging as immediate beneficiaries. Binance’s resilience and Coinbase’s stock surge underscore the dynamic nature of the crypto market.

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