The globally renowned cryptocurrency exchange, Coinbase is consistently removing cryptocurrency trading pairs in a bid to improve liquidity on its platforms. The exchange believes this step will help increase overall market health as well.
Quick Take:
- Coinbase suspends 80 Non-UST trading pairs to improve overall market health and liquidity.
- The removed trading pairs make up a negligible amount of Coinbase’s trading volume.
- The exchange continues to struggle with decreasing trading volumes.
As per an announcement from Coinbase, the exchange has suspended a total of 80 non-USD trading pairs. These pairs were used for some assets on the Coinbase Exchange, Coinbase Prime, and Advanced Trade.
Many of these trading pairs were pinned to Bitcoin, Tether, and other renowned stablecoins or cryptocurrencies. Some Euro pairs also made the cut as specified in the official notice. The exchange informed users that they can still trade markets in its more liquid USD order books through the USDC balance.
A few of these tokens were ACH-USDT, AGLD-USDT, ARPA-EUR, ARPA-USDT, AUCTION-EUR, AUCTION-USDT, BADGER-EUR, BADGER-USDT, BAND-BTC, BAND-EUR, BAND-GBP, BNT-BTC, BNT-EUR, BTRST-BTC, BTRST-EUR, BTRST-USDT, C98-USDT, and CTSI-BTC.
Coinbase removed these tokens in continuity with its previous announcement at the start of October. It further added,
“Please note these markets make up an immaterial amount of Coinbase Exchange’s total trading volume.”
Coinbase Continues to Suspend Tokens in a Strategic Move
The exchange has hinted that it will persist with its decision to delist some tokens on the same factors. Before this decision, the platform suspended trading for 41 non-USD market pairs in the middle of September. None of these tokens included a pair of the USDC stablecoin.
One of the major reasons for this move is Coinbase’s falling trading volume this year. Many analysts believe that the exchange’s trading volume is set to rise due to the constant regulatory pressure on its most prominent rival, Binance. However, things have not turned out as expected.
Even though Binance lost its spot market share for a seventh consecutive month in September and has fallen to only 34%, Coinbase has struggled to capitalize on it. In the third quarter of 2023, the exchange noticed a mammoth 52% fall in its spot trading volume as compared to the same time last year. This is the lowest figure for the exchange since its listing on the Nasdaq stock market.
