- Crypto.com is currently the second largest cryptocurrency exchange in the world.
- The company said trading volume increased after attracting major traders.
Crypto.com is expected to register $139 billion worth of trades in October, which will be the company's best monthly performance.
Founded in 2016, the Singapore-based exchange is currently the world's second-largest crypto trading platform by trading volume, according to data compiled. The Block. In recent months, it has outperformed both Dubai-based Bybit and U.S. exchange giant Coinbase.
A large part of Crypto.com's surge in trading volume is due to its outreach to institutional clients, said George Tucker, general manager of Crypto.com. DL News.
“We attract traders with tremendous trading frequency, and our liquidity supports their demand,” Mr. Tucker said.
Tucker said these customers chose the exchange over other exchanges because it allows them to take advantage of market inefficiencies at scale.
Crypto.com trading volume has increased rapidly this year. In January, the company handled just $37 billion in transactions, compared to rival Coinbase's $75 billion.
Now, the situation has reversed, with Crypto.com's October trading volume of $139 billion, more than double Coinbase's $57 billion.
Still, Crypto.com's record numbers pale in comparison to top crypto exchange Binance's $706 billion figure in October.
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surprise
Crypto.com's surge in the second half of this year surprised many.
Despite handling more trading volume than Coinbase, Coinbase only receives about 10% of Coinbase's monthly visitors, according to data from website traffic analysis platform Similarweb.
In the Apple App Store Download Ranking, a popular metric to gauge retailers' interest in cryptocurrencies, Coinbase ranks 308th as the most popular free app, while Crypto.com ranks 425th.
These indicators also show that a large portion of Crypto.com's trading volume comes from a small number of high-frequency traders and institutions, rather than individual participants.
“It could be a simple case that the largest traders are trading from our platform,” Tucker said, adding that this situation could mean that the increase in trading volume on the exchange is “the hand of one or two traders.” “This does not mean that it is left to the discretion of the public,” he added.
Crypto.com says it operates in more than 100 countries, the most of any crypto exchange. The ability to attract users from jurisdictions where other exchanges do not operate may also be contributing to the company's growth.
“Coinbase is very dominant in North America, but not as dominant in other markets where we have representation,” Tucker said, adding that Southeast Asia is a very important market.
According to Samelweb, only 26% of Crypto.com's web traffic comes from the US, compared to 65% of Coinbase's web traffic.
This is supported by the favorable virtual currency market environment. “Especially in the last six months, we've seen a significant uptick that coincides with increased market activity,” Tucker said.
Bitcoin has soared 109% over the past year on the back of the launch of the Bitcoin Spot ETF, Chinese government stimulus, and expectations for further interest rate cuts in the United States.
Tim Craig is DL News' DeFi correspondent based in Edinburgh. To get tips, tim@dlnews.com.
