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Kraken Emerges as the Leading US Exchange for Altcoins

Kraken overtakes Coinbase as the top US altcoin exchange, with a 47% market depth share, showcasing its market share growth and regulatory challenges faced by Coinbase.

Key Points

  • Kraken surpasses Coinbase to become the leading US altcoin exchange with a 47% market depth share.
  • Kraken’s market share growth is highlighted by rising from 39% to 47%, outpacing Coinbase’s 41%.
  • Kraken also gains ground in platforms supporting USD deposits, with its market share increasing from 14.78% to 21.1%.
  • Coinbase faces regulatory challenges from the SEC, while Kraken’s success is attributed to new offerings and advanced trading platform.

In a surprising turn of events, cryptocurrency trading platform Kraken has surpassed its rival Coinbase to become the most liquid exchange for altcoins in the United States. According to research analyst Dessislava Laneva from Kaiko, by the end of July, Kraken had claimed 47% of the market depth for the top 10 altcoins in the US.

Kraken’s Market Share Growth

In January 2023, Kraken held a market depth share of only 39% for altcoins, while Coinbase led with 45%. Meanwhile, Binance.US had a 7% market share, and six other platforms collectively accounted for 9%. However, recent data analyzed by Kaiko researchers indicates that Kraken’s market share has significantly increased to 47%, surpassing Coinbase’s 41%. Binance.US now holds only a 1% market share, while the remaining exchanges have a combined share of 10%. Kraken’s enhanced market share means it has a greater capability to absorb large market orders without significantly affecting the altcoin’s price.

Kraken’s USD Support Market Share Surges

In addition to the growth in market depth, Kraken has also experienced an increase in market share among platforms that support USD deposits. The Block’s USD Support Exchange Volume dashboard shows that Kraken’s market share rose from 14.78% in January to 21.1% in July. This growth is particularly notable considering the platform only held an 8.3% share in August last year.

Coinbase Faces Regulatory Challenges

While Kraken strengthens its position in the digital asset market, Coinbase has encountered regulatory hurdles, potentially leading to a decline in its trading volumes. In early June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, accusing the exchange of operating as an unregistered broker, securities exchange, and clearing agency.

Coinbase CEO Brian Armstrong recently revealed that the SEC instructed the exchange to halt the trading of all altcoins, as they were considered securities and violated federal laws.

Despite the regulatory challenges faced by Coinbase, Kraken’s recent success can be attributed to the launch of its advanced trading platform, Kraken Pro, and the enhancement of several offerings. According to a spokesperson from Kraken, the exchange’s share of total volumes reached an 18-month high after the introduction of the new platform. Furthermore, Kraken’s market share in the EUR spot market has surged from 35% to 53%, and its AUD spot market has multiplied by six times in the past few months.

As the competition between Kraken and Coinbase intensifies, Kraken’s rise to the top spot in the US altcoin market signifies a major shift in the industry landscape.