Crypto.com is experiencing a remarkable surge in its trading volume. In October, the Singapore-based cryptocurrency exchange is set to register $139 billion worth of trades, marking its best monthly performance ever. Founded in 2016, Crypto.com has rapidly grown to become the world’s second-biggest crypto trading platform by volume. It has outpaced rivals like Dubai-based Bybit and the U.S. exchange giant Coinbase in recent months.
A significant part of this growth comes from attracting institutional clients and high-frequency traders. George Tucker, a general manager at Crypto.com, mentioned that the exchange has been successful in drawing traders who engage in immense trade frequency. “Our liquidity supports their demand,” Tucker said. These institutional clients choose Crypto.com because it allows them to capitalize on market inefficiencies at scale.
Crypto.com’s trading volume has grown rapidly this year. In January, it handled just $37 billion in trades, while Coinbase managed $75 billion. Now, the situation has reversed. Crypto.com’s October volume of $139 billion is more than double Coinbase’s $57 billion. This sudden rise has taken many by surprise, especially considering that Crypto.com only has around 10% of Coinbase’s monthly visitors, according to data from website traffic analysis platform Similarweb.
On the Apple App Store download rankings, which is a popular metric for gauging retail interest in crypto, Coinbase ranks as the 308th most popular free app. In contrast, Crypto.com is at 425th. These metrics suggest that the bulk of Crypto.com’s trading volume comes from a smaller number of high-frequency traders and institutions rather than retail participants. “It might be a simple case that we’ve got the biggest traders trading off our platform,” Tucker explained. He added that the increased trading volumes don’t rest in the hands of just one or two traders.
Crypto.com operates in over 100 countries, the most of any crypto exchange. Its global expansion strategy has allowed it to pick up users from jurisdictions where other exchanges don’t operate. “Coinbase is very dominant in North America but not as dominant in other markets where we’ve got representation,” Tucker said. He emphasized that Southeast Asia is a very important market for them. According to Similarweb, only 26% of Crypto.com’s web traffic comes from the U.S., compared to 65% of Coinbase’s. This web traffic distribution highlights Crypto.com’s focus on markets outside North America.
The favorable crypto market conditions have also contributed to Crypto.com’s success. “In the last six months, we’ve seen a significant uptick that coincided with more activity in the market,” Tucker noted. Bitcoin has soared 109% over the past year, fueled by the launch of Bitcoin spot exchange-traded funds (ETFs), Chinese government stimulus, and the expectation of further interest rate cuts in the U.S. The impact of Bitcoin spot ETFs on Bitcoin’s surge cannot be overstated, as they provide a more accessible way for investors to enter the market.
Despite Crypto.com’s impressive performance, it still trails behind Binance, the top crypto exchange by trading volume. Binance registered a staggering $706 billion in October. However, Crypto.com’s growth compared to Binance and Coinbase shows that it is making significant strides in the crypto exchange rankings. Its focus on liquidity and market inefficiencies has made it an attractive platform for institutional clients and high-frequency traders.
High-frequency traders prefer Crypto.com because of its ability to handle large volumes with minimal slippage. The exchange’s liquidity support allows these traders to execute their strategies effectively. Market inefficiencies present opportunities for profit, and Crypto.com’s platform enables traders to capitalize on these at scale. This focus has attracted major traders to the platform, contributing to its trading volume surge.
Crypto.com’s performance is particularly notable given its lower retail app downloads. The exchange’s position on the App Store suggests that it doesn’t rely heavily on retail participants for its trading volume. Instead, it leverages its appeal to institutional clients and operates in markets underserved by other crypto exchanges. This strategy has paid off, as evidenced by its trading volume growth and global expansion.
The crypto market conditions have been favorable, with increased activity contributing to higher trading volumes across exchanges. The expectation of U.S. interest rate cuts has fueled investment in cryptocurrencies, as lower interest rates can lead to a weaker dollar and higher asset prices. Chinese government stimulus has also played a role in boosting the crypto market, providing additional liquidity and investment.
The launch of Bitcoin spot ETFs has made it easier for investors to gain exposure to Bitcoin without holding the cryptocurrency directly. This development has increased demand for Bitcoin and, by extension, increased trading volumes on exchanges like Crypto.com. The impact of these ETFs on the market underscores the importance of regulatory developments in shaping the crypto landscape.
Crypto.com’s ability to adapt to market conditions and focus on liquidity has set it apart from competitors. By attracting high-frequency traders and institutional clients, it has carved out a niche in the crypto exchange market. Its operations in over 100 countries have allowed it to tap into markets that other exchanges may overlook, further driving its growth.
George Tucker’s insights shed light on the factors behind Crypto.com’s unexpected rise. The exchange’s focus on supporting traders with immense trade frequency and providing liquidity has resonated with its target audience. While it may not have the same level of retail participation as Coinbase, its strategy has proven effective in increasing its trading volumes.
The comparison of Crypto.com’s and Coinbase’s monthly visitors and trading volumes highlights the different approaches these exchanges take. While Coinbase has a strong retail presence, Crypto.com has focused on institutional clients and global expansion. This focus has allowed it to outpace Coinbase in trading volume despite having fewer visitors.
In summary, Crypto.com’s October trading volume reaching $139 billion marks a significant milestone for the exchange. Its rise to become the second-largest crypto trading platform by volume reflects its successful strategy of courting institutional clients and high-frequency traders. By focusing on liquidity and market inefficiencies, Crypto.com has attracted major traders to its platform.
The exchange’s global operations across over 100 countries, especially in Southeast Asia, have contributed to its growth. Its ability to pick up users from jurisdictions where other exchanges don’t operate has given it an edge. The favorable crypto market conditions, including Bitcoin’s surge and regulatory developments like Bitcoin spot ETFs, have also played a role in boosting its trading volume.
Crypto.com’s performance, despite lower retail app downloads and fewer monthly visitors compared to Coinbase, demonstrates the impact of focusing on institutional clients and high-frequency trading. Its expansion into markets underserved by other crypto exchanges and its emphasis on liquidity support have been key factors in its success.
As the crypto market continues to evolve, exchanges like Crypto.com that adapt to market conditions and focus on key areas such as liquidity and market inefficiencies are likely to continue thriving. The exchange’s unexpected rise in the crypto exchange rankings serves as an example of how strategic focus and global expansion can drive significant growth in the competitive world of cryptocurrency trading.
