Coinbase experienced a significant boost in trading activity, with a notable increase in trading volume following regulatory challenges faced by Binance. This uptick in trading volume also aligned with a considerable upswing in the stock price of Coinbase (COIN).
In November, Binance and its former CEO, Changpeng Zhao, acknowledged guilt in various financial law violations and reached a settlement of $4.3 million with U.S. authorities, including the Commodity Futures Trading Commission.
Coinbase Thrives Following Binance’s Regulatory Woes
Following Binance’s recent regulatory challenges, Coinbase emerged as a significant gainer, witnessing a notable 62% increase in monthly trading volume, soaring from $31.16 billion in October to $50.4 billion. This uptick was corroborated by blockchain analytics firm Kaiko, which identified Coinbase and Bybit as primary beneficiaries amid Binance’s difficulties.
Percentage Change in Bitcoin Market Share. Source: Kaiko
Kaiko’s analysis revealed that Binance relinquished market share to Coinbase during non-U.S. trading hours and to Bybit overall. The trend, especially Coinbase’s growth outside U.S. hours, is attributed to its compliance-focused approach. Coinbase’s role as the surveillance partner for various asset managers, including BlackRock, as indicated in SEC filings, further solidifies its position. Observers anticipate this trend to endure, given Coinbase’s reputation and regulatory approach.
Coinbase (COIN) Stock Skyrockets Amid Binance Fallout
In the aftermath of Binance’s regulatory challenges, Coinbase’s COIN stock experienced a remarkable surge, rallying by about 73% in the past month. Starting November at roughly $80, the stock’s value soared to around $137 by the market close on December 1.
This surge adds to COIN’s year-long trend of outperforming leading assets like Bitcoin and Ethereum. Over the last six months, the stock’s value has grown by over 100%, with a staggering 260% increase year-to-date.
Coinbase COIN Stock Price Performance. Source: TradingView
However, it’s noteworthy that COIN shares still linger around 60% below their all-time high of $343. Despite this, Coinbase’s recent momentum suggests growing investor confidence and resilience in the wake of industry challenges.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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