The United States-based cryptocurrency exchange Coinbase has announced that it is removing 80 trading pairs from its platform in order to improve liquidity. The suspended pairs include cryptocurrencies such as Bitcoin (BTC), stablecoins like Tether (USDT), and fiat currencies like the euro.
Coinbase made the announcement on October 16, stating that the removal of these trading pairs is intended to enhance the overall market health and consolidate liquidity. The removals took effect at 19:30 UTC on the same day, impacting not only Coinbase’s exchange but also other platforms like Advanced Trade and Coinbase Prime.
In a tweet, Coinbase stated that these markets make up an insignificant portion of its total trading volume. However, the exchange emphasized that users can still trade the affected markets by using the exchange’s more liquid USD order books and utilizing their USD Coin (USDC) balances.
This move by Coinbase is in line with its previous plans to suspend certain markets, which were announced earlier in October. In mid-September, Coinbase removed 41 non-USD markets for similar reasons. Although several trading pairs involving Tether were removed, none of the suspended markets included USDC, which is a stablecoin co-developed by Coinbase and Circle.
Coinbase’s actions to improve liquidity come at a time when the exchange has seen a decline in its trading volumes throughout the year. According to CCData, a cryptocurrency market data provider, Coinbase’s spot trading volumes for the third quarter of the year have plummeted by 52% compared to the previous year.
Coinbase is not the only major cryptocurrency exchange experiencing a decrease in market dominance. Binance, another prominent exchange, has also seen its spot market share falling consistently. In September 2023, Binance’s spot market share dropped for the seventh consecutive month, decreasing from 55% in early 2023 to 34% by September 2023.
These market developments indicate a shifting landscape within the cryptocurrency industry. Both Coinbase and Binance, as two of the largest exchanges, are actively taking measures to navigate these changes and maintain their competitive positions. By removing certain trading pairs and focusing on more liquid markets, Coinbase aims to improve the overall health of its market and enhance liquidity for its users.
In conclusion, Coinbase’s decision to remove 80 trading pairs from its platform is part of its ongoing efforts to improve liquidity. This move aligns with the exchange’s plans to suspend certain markets and consolidate liquidity. While these suspended markets make up a negligible portion of Coinbase’s trading volume, the exchange ensures that users can still trade these markets using its more liquid USD order books. The declining trading volumes on Coinbase and other exchanges indicate a shifting landscape within the industry, prompting exchanges to adapt and maintain their competitive positions.