The world of crypto is inherently competitive with thousands of assets vying to be the dominant form of digital money. This competition is also seen among the hundreds of crypto exchanges. By offering lower fees, wider coin selections, better security, and user-friendly interfaces, they can entice more users to their platform.
One of the top crypto exchanges is Coinbase, a US-based crypto platform. However, in a massive shift in the crypto exchange landscape, HTX has overtaken the platform in terms of spot trading volumes (total amount of crypto bought and sold for immediate settlement).
The higher spot trading volume indicates that more users prefer HTX’s services over Coinbase’s. This also shows the growing popularity of HTX within the global crypto market.
If you like to crypto gamble, you must learn more about HTX’s recent dominance in the market.
The Rise of HTX
CoinGecko is a crypto data platform that tracks the performance of cryptocurrencies and analyses the market. According to their data, HTX is now handling over $2.4 billion in daily spot trading volumes.
This makes the platform the fourth-largest crypto exchange in the world as of writing. They are trailing behind the likes of industry giants like Binance, Bybit, and OKX.
In contrast, Coinbase, a long-time market leader, is lagging with approximately $2 billion in daily spot trading volumes. Remember that the market is inherently volatile, and this placement can change within days or weeks.
Tron Founder’s influence
The sudden change in the crypto exchange landscape does come as a surprise for this specific instance. One of the factors that influenced the higher trading activity on HTX’s platform was thanks to Tron’s founder, Justin Sun.
He serves as an advisor to the exchange and holds significant assets on the platform. Sun took to social media to announce HTX’s milestone, stating, ‘This is just the beginning, and we are just getting started’.
Challenges For Coinbase
The lower spot trading volume for Coinbase is due to many factors. One of these is the multiple legal challenges that the platform faces in the United States. In June 2023, the US Securities and Exchange Commission (SEC) filed a securities violation lawsuit against Coinbase.
They alleged that the exchange operates as an unregistered exchange, broker, and clearing agency. With this, Coinbase is fighting to prove its case considering that the US Court denied their motion to dismiss the SEC’s lawsuit.
Rebranding And Controversy
Previously known as Huobi, HTX marked its 10th anniversary in September 2023. Here, they rebranded to HTX. The move was not without controversy, as many drew parallels between Huobi’s new HTX name and the collapsed exchange.
With its new name, the H represents the first letter of Huobi. The T represents Sun’s blockchain project, Tron, and the X stands for exchange.
Market Implications
Various implications with the shift in trading volumes between HTX and Coinbase can affect the crypto market. As HTX solidifies its position as a leading global exchange, it may attract more trading activity and user interest. This can potentially influence the broader crypto ecosystem.
Aside from this, the dominance of a non-US exchange like HTX could have geopolitical implications. Regulatory bodies around the world might be prompted to re-evaluate their approaches to crypto regulation.
Shift In The Crypto Exchange Landscape
With HTX overtaking Coinbase in terms of trading volume, there is a massive shift in the crypto exchange landscape. It shows the growing influence of HTX driven by factors such as the Tron founder’s involvement and its rebranding efforts.
As the legal challenges faced by Coinbase continue, the competitive dynamics within the crypto exchange market may continue to evolve. These changes in market share might affect crypto gamble players as well.
