Has there been a shift in the dynamics of the altcoin exchange market in the United States? The month of July saw a significant turn of events as Kraken usurped its competitor Coinbase to become the most liquid US exchange for altcoins. This was brought to light by Dessislava Laneva, a research analyst at Kaiko, a leading crypto data platform.
Altcoin Market Depth: A New Leader Emerges
At the start of the year, Coinbase led the market with a 45% share of the altcoin market depth, with Kraken trailing at 39%. Binance.US, the American offshoot of the world’s largest crypto exchange, Binance, accounted for 7%, while six other platforms collectively held 9%. But the tables turned by July’s end, with Kraken commanding 47% of the market depth, pushing Coinbase down to 41%. Binance.US and the remaining exchanges held 1% and 10% respectively. This shift indicates Kraken’s enhanced capacity to manage large market orders without drastically affecting the altcoin’s price.
Kraken’s Growing Market Share
Besides the increase in market depth, Kraken has also seen a rise in its market share among exchanges that support USD deposits. According to The Block’s USD Support Exchange Volume dashboard, Kraken’s market share grew from 14.78% in January to 21.1% in July, a substantial increase from its 8.3% share in August of the previous year.
A representative from Kraken attributes this growth to the launch of their advanced trading platform, Kraken Pro, and the enhancement of several offerings. Following the launch, the exchange’s total volumes hit an 18-month high. The representative also noted that Kraken’s share of the EUR spot market has leapt to 53% from 35%, and the AUD spot market has multiplied sixfold in recent months.
Coinbase: A Rocky Road Ahead?
While Kraken is enjoying its growth, Coinbase has had to contend with regulatory challenges. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase in early June over allegations of operating as an unregistered broker, securities exchange, and clearing agency. Coinbase’s CEO, Brian Armstrong, disclosed that the SEC instructed the exchange to stop trading all altcoins as they were considered securities and violated federal laws.
As the market continues to evolve, it’s essential for traders to keep abreast of these developments. A handy tool like cryptoview.io can provide valuable insights and data to help navigate the dynamic crypto market.
