Crypto Exchanges OKEx and Binance are Attempting to Outcompete Coinbase
OKEx and Binance Are Crushing The Competition While Coinbase Watches
Since the end of 2017, cryptocurrencies have been facing a severe bear market and the market has been affected. Many altcoins are seeing a furious downtrend and a lot of them simply did not survive.
This has affected most exchanges and it looks like Coinbase was the one who took the hit the most. OKEx and Binance are still following aggressive plans for global expansion and it looks like the Asian exchanges are having a lot more success than Coinbase currently is.
In fact, Coinbase, Bitstamp and Kraken, all based in the United States, are seeing the worst of the crisis. Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash are responsible for more than 50% of the crypto trade volume and these tokens have lost most of their value since last year.
OKEx And Binance Are Getting More Users
The main problem for Coinbase is that it does not offer such a high amount of coins that Binance and OKEx do. This limits the traders that decide to use the company and forces them out. Binance and OKEx both have a vast amount of crypto projects and this gives them an edge in this competition.
According to a survey made by Diar, Coinbase has lost trading volume in 2018 while OKEx and Binance increased their user base and the trading volume has either increased or stayed the same. Now, they are the two major exchanges in the world by a large margin, which continues to grow.
Another aspect is that the USD/crypto trading pairs have decreased a lot, more than 80%, for Coinbase. Bitstamp lost about 70% of the volumes. Binance and OKEx have more altcoins and Tether (USDT), so they are not so depending on USD/crypto trading pairs like the American exchanges.
Now, Coinbase is slowly trying to regain its market as it acquired Paradex which offers more options. Coinbase has more than 50% of users from the United States, so it is mainly a very national exchange in a strong market.