Over the past decade, Coinbase has reached millions of cryptocurrency traders and expanded to become the largest crypto exchange in the US. Despite its solid reputation, Coinbase did not avert scrutiny and skepticism. It has intensified in the past two years, driven by the sharp upsurge and plunge in crypto prices in a short period. But what has become the hot topic was the sudden collapse of FTX, the former largest crypto exchange worldwide. <\/p>\n
Nonetheless, it remains an influential figure in the market. True believers regard cryptocurrencies despite not being a sure inflation hedge. Bitcoin\u2019s inverse correlation with inflation showed how much macroeconomic indicators could affect crypto prices. Traders continue to capitalize on crypto volatility to generate massive gains. <\/p>\n
Given this, Coinbase enjoys high crypto balances. This formidable crypto exchange giant leverages the weakness of its smaller peers. Inflows and outflows may sometimes be overwhelming, but its liquidity ensures it can sustain its operations. Hence, this article will explain why Coinbase is a safe cryptocurrency exchange. <\/p>\n
As a crypto trading newbie, one often looks for those exchanges with low transaction fees and secure user anonymity. But a more important consideration is whether it can sustain business operations with massive transactions. <\/p>\n
Being in the business for over a decade, we may not have to ask ourselves, \u201cIs Coinbase safe<\/a>?\u201d It has undergone massive ups and downs, such as the crypto bubble burst in 2017-2018 and the FTX fallout in 2022. Its liquidity and wise token allocation make it one of the most durable crypto exchanges. These are some reasons Coinbase is a safe crypto exchange. <\/p>\n Since the FTX collapse, we have seen how Binance has swiftly taken over the market. It dethroned Coinbase and kept a wide margin from its peers for a long time. <\/p>\n Even so, Coinbase showed it has not yet faltered and would not be another FTX despite the huge drop in traders\u2019 confidence. Binance may be the giant now, but Coinbase is one of the original crypto exchanges. It has stood the test of time, facing massive crypto market shocks in recent years. <\/p>\n But what makes it a memorable crypto exchange contender is its stable market share. In January 2023, its market share was 6.97%<\/a>. It plunged to 4.58% in only a month, the lowest market share in many years. <\/p>\n It rebounded in the following months but stayed within a 5-6% range. But since the second half of 2023, we can see a sustained increase in its market share before climbing to 6.2%. There have been some ups and downs, but they were much more manageable than in 2022. <\/p>\n Image Source: <\/em>The Block<\/em><\/a><\/p>\n At the end of the year, the market share increased again to 6.34%. As of today, it is recorded at 6.35%. It may be lower year-over-year but much better than in the previous months. The sustained rebound shows it can withstand challenges and regain momentum amid tight competition. It is indeed a resilient crypto exchange.<\/p>\n And if we compare it to other exchanges, Coinbase had one of the most stable market share changes in the past year. Take Binance as an example. It remains the largest exchange but has already lost about 25% of its market share after falling from 59% in January 2023 to 35% today. <\/p>\n We can attribute it to the recent controversy where it admitted its fault for violating the US Anti-Money Laundering Act. Hence, its close competitors, such as Coinbase, OKX, and Upbeat, capitalize on it to generate more traders. <\/p>\n Another factor to consider is the liquidity and availability of digital assets. Given its adequate balance of primary cryptocurrencies, Coinbase remains a huge cryptocurrency exchange. These include Bitcoin (BTC) and Ethereum (ETH). <\/p>\n Coinbase is the second-largest cryptocurrency exchange in the total Bitcoin balance. As of this writing, it has 411,762.68<\/a> Bitcoins or 2.2% of the total circulating supply in the market. It also has a narrow gap with Binance, the top Bitcoin holder, with 554,836.88 or 2.8% of the total market volume. <\/p>\n Bitfinex comes as a close third with 388,742.04 or 2.0% of the total market supply. The top three Bitcoin exchanges have a wide margin from the fourth placer, OKX, with just 132,678.97 or 0.7%. <\/p>\n With regard to Ethereum, the total balance in Coinbase is 2,185,579.12<\/a>, or 1.8% of the total circulating supply. It ranks third after Binance and Bitfinex with 3,770,920.82 or 3.1% and 2,349,649.56 or 2.0%, respectively. Kraken is in fourth place with 1,691,412.27, or 1.4% of the total circulating coins. These four largest Ethereum holders are far larger than OKX, the fifth placer with 945,955.80 or 0.8%. <\/p>\nStable monthly market share <\/h3>\n
High cryptocurrency balance <\/h3>\n