Leading US-based crypto exchange Coinbase has removed a total of 80 non-USD trading pairs from its platform in a bid to enhance liquidity on the platform. This decision, announced on October 16, comes as part of Coinbase’s ongoing efforts to bolster overall market health and consolidate liquidity.
Coinbase suspended trading for various pairs, including prominent cryptocurrencies such as Bitcoin, stablecoins like USDT, and fiat currencies like the euro. The removal of these trading pairs, executed simultaneously on the Coinbase exchange, Advanced Trade, and Coinbase Prime at 19:30 UTC on October 16, signifies a significant step towards optimizing market dynamics.
The exchange’s rationale behind the removals is to improve the “overall market health and consolidate liquidity,” as stated in their official announcement. Users affected by these changes can still engage in trading activities using the exchange’s “more liquid USD order books,” leveraging their USD Coin balances.
This move aligns with the exchange’s previous announcement made earlier in September, indicating their intention to suspend specific markets. Notably, the suspended pairs did not include USDC, a stablecoin co-developed by it and Circle, maintaining stability within their ecosystem.
Coinbase Facing Market Challenges Amidst Declining Trading Volumes
The exchange’s decision to refine its trading pairs comes against the backdrop of declining trading volumes throughout 2023. Data from cryptocurrency market analytics provider CCData reveals a sharp 52% decline in its spot trading volumes for the third quarter compared to 2022 figures.
The exchange is not alone in facing these challenges, as major cryptocurrency exchanges like Binance have also witnessed a reduction in their spot market share dominance. According to CCData, Binance experienced a seventh consecutive monthly decline, with its spot market share plummeting from 55% in early 2023 to 34% in September 2023.