Kraken Dominates U.S. Altcoin Exchange Scene, Leaving Coinbase Behind

CryptoMode Altcoins Long Positions Altcoin Trading Kraken

In a surprising turn of events, Kraken, the renowned cryptocurrency trading platform, has surpassed its main rival, Coinbase. By July, it was the top U.S. exchange in altcoin liquidity.

Shifts in Market Depth Dynamics: Kraken vs. Coinbase

Dessislava Laneva, an esteemed analyst from the cryptocurrency data behemoth Kaiko, highlighted this paradigm shift on Twitter. By July, Kraken had garnered a staggering 47% of the U.S. market depth for the leading 10 altcoins. This marks a significant surge, considering Kraken’s market share was 39% at the outset of 2023.

In contrast, Coinbase witnessed its share slide from 45% to 41% during the same period. Furthermore, Binance.US, the U.S. subsidiary of the global crypto juggernaut Binance, saw its market share shrink from 7% to a mere 1%. Meanwhile, six other notable platforms together constituted the remaining 10%.

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This redistribution in market share denotes Kraken’s enhanced capacity to handle vast market orders. Crucially, this can occur without causing fluctuations in the relevant altcoin price.

USD Deposits: Kraken’s Growing Dominance 

There’s more to Kraken’s recent triumphs. Their share among exchanges facilitating USD deposits has witnessed an impressive uptick. Market data emphasizes Kraken’s share amplifying from 14.78% in January to a commendable 21.1% come July.

The catalyst for Kraken’s stellar performance? The unveiling of their state-of-the-art trading platform: Kraken Pro. Complemented by a slew of enhanced offerings, it’s no surprise that their volume shares have reached an 18-month pinnacle.

Kraken’s presence in the EUR spot market rocketed from 35% to 53%. Similarly, their AUD spot market share has recently experienced a six-fold growth.

Coinbase’s Hurdles 

While Kraken enjoys its ascendancy, Coinbase grapples with regulatory storms. Their tribulations peaked in June when the U.S. Securities and Exchange Commission initiated a lawsuit. The allegations were severe, encompassing charges of operating as an unauthorized broker, securities exchange, and clearinghouse.

Kraken has convincingly demonstrated its mettle in the dynamic world of cryptocurrency exchanges. Market watchers will keenly observe how competitors respond as they continue to innovate and expand.

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