Centralized Exchanges (CEXs) Remain A Promising Avenue For Users To On-Ramp Cryptocurrency As Opposed To Decentralized Exchanges (DEX)
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Security, product innovation, and liquidity are deemed successful for crypto exchanges’ growth and sustainability. Despite the calamitous crypto events, Bybit emerged stronger in these key dimensions. As you read on, we explain how Bybit came to the fore as the fastest-growing centralized crypto exchange globally.
Research suggests that Bybit is among the 11 analyzed crypto exchanges to show a steady market share growth, increasing from 1.1% to 3.9%. Bybit also reported a stellar growth of 248% in month-on-month trading volume in September 2022 by implementing a zero-fee trading program.
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Users are indeed more risk-averse concerning the collapse of Terra and the bankruptcy of the FTX exchange. Still, centralized exchanges (CEXs) remain a promising avenue for users to on-ramp cryptocurrency as opposed to decentralized exchanges (DEX), especially when decentralized finance (DeFi) is still thought to be at its infant stage.
What would be Bybit's trajectory to secure the ascendancy? And does the statistical vantage point agree? Here's what was revealed with facts.
1. Bybit will continue to grow at an exponential rate
A report done by CryptoCompare shows that Bybit generated a shift in business strategy that propelled further growth in trading volume and market share despite a broad market downtrend. Here is what Bybit has done that contributed to its development:
a. Zero-fee trading program: Implementation of zero-fee trading all across Spot trading pairs on September 6, 2022.
b. A newly reformed branding: Bybit unveils a new brand identity with a consistent layout and better brand messaging, reassuring users about our commitment to excel. Providing only the best and most reliable services for traders alike to magnify profits with new product innovation and better opportunities.
c. Exchange security and transparency offering: Strengthening user's confidence in the exchange by releasing the PoR report and Merkle Tree on December 10, 2022.
d. Trend capturing: Bybit sees a shift in users' confidence in CEXs and the rising popularity of decentralization. The quick reaction yields the release of Bybit's Web3 wallet alongside the integration of ApeX Pro bridges the gap of trading in a CeFi and DeFi environment to actualize financial empowerment and inclusion for all.
2. Security, Transparency and Proof-of-Reserves are gaining popularity — Bybit is here to stay
The collapse of Terra, BlockFi, and FTX continues to raise many eyebrows. A continuous ignition of fear, uncertainty, and doubt (FUD) forces more retail and institutional traders to put a microscope on an exchange's security measures, proof-of-reserves, infrastructure setups, and community engagement. Zooming into Bybit's effort to reassure users:
a. Proof-of-reserve (PoR): Bybit is one of the few exchanges to show clean PoR proving the funds held in the reserves match the liabilities.
Find out our PoR snapshot here.
B. Security: Hacks are getting more rampant — Bybit tightens the security standard to introduce two-factor authentication and 24-hours customer services to support users in distress. The bug bounty program was launched to encourage white hackers to identify and resolve security bugs.
C. Custodial and cold wallet solution: Bybit implements backend security measures, including cold wallet storage, offering the option for custodian fund safekeeping and geographical distribution of private user keys to mitigating a central point failure.
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3. Eminent investment in the Web3 space to support its long-term vision
CEO Ben Zhou says Bybit is here to stay and is constantly improving to put the firm in a solid position to meet customers' changing needs. Its evolving company climate translates to the emerging expansion in Web3 product innovation, including the launch of the latest Web3 wallet — bridging the gap between centralization and decentralization.
Believe it or not, crypto exchanges remain vital for users, and the potential is eminent. We seek to build a crypto ark that helps you move forward with better reliability, products, and opportunities. Glean insights into the complete report — 4 Key CEX Trends of 2023.
Free Access to CryptoCompare Full Report
Source: Bybit Blog | 2023 CEX Report Highlights Bybit's Resilience in Winter
