Shares of crypto exchange Coinbase (NASDAQ:COIN) are up over 4% at the time of writing despite news that it is no longer the second-largest in terms of global trading volume, according to blockchain analytics firm Kaiko. In fact, since October 2023, Coinbase’s market share dropped from 11% to 8%, while its rival Bybit now accounts for about 16% of the global trading volume. Bybit’s growth is mostly due to lower trading fees and Binance’s regulatory issues.
In addition, when breaking down the numbers into specific cryptocurrencies, Kaiko reports that Bybit’s volume increase is driven mainly by Bitcoin (BTC-USD) and Ethereum (ETH-USD), whose market share on the platform rose from 17% to 53% since last year. In contrast, Binance, which is still the leader with a 54% market share, saw its Bitcoin and Ethereum volume drop from 59% to 43%.
Despite Bybit’s rise, Wall Street is actually pulling back from using the platform, according to Crypto News. Indeed, Citadel Securities-backed Hidden Road stopped client access to Bybit due to concerns over “know your client” and anti-money laundering procedures. In response, Bybit stated that it is committed to transparency and will provide an update as the review progresses.
Is COIN a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on nine Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 257% rally in its share price over the past year, the average COIN price target of $248.89 per share implies 12.62% upside potential.
