Cryptocurrency exchanges are assessed to have achieved growth and sustainability if they successfully innovate their products, maintain adequate liquidity, and prioritize security. Bybit has emerged stronger in several important dimensions despite the disastrous crypto events. As you continue reading, you will learn how Bybit came to be recognized as the centralized cryptocurrency exchange with the quickest growth rate worldwide.
According to the most recent report that was released by CryptoCompare, it appears that Bybit is one of the 11 crypto exchanges that have shown consistent market share growth, increasing from 1.1% to 3.9%. Bybit also announced a phenomenal growth of 248% month-on-month in trading volume in September 2022 as a result of the implementation of a zero-fee trading program.
Users have become significantly more risk apprehensive as a direct result of the fall of Terra and the collapse of the FTX exchange. In spite of this, centralized exchanges (CEXs) continue to be a potential avenue for users to on-ramp crypto in comparison to decentralized exchanges (DEX), particularly at this point in time when decentralized finance (DeFi) is still considered to be in its formative stages.
Bybit’s Resilience During the Crypto Winter
CryptoCompare, a global pioneer in digital asset data and an FCA-authorized benchmark administrator, has recently published a report which provides a detailed perspective on the landscape of centralized crypto exchanges. The report titled “Centralized Exchange Retrospective: 2022 Review and 2023 Outlook” analyzes the market-wide changes in trading volumes, liquidity measures, and client acquisition strategies for CEXs, as well as the significant trends that will be important to keep an eye on in 2023.
Bill Xing, head of financial products at Bybit, said: “This report points out some key data that will guide us and the industry. The insights show it’s possible to sustain growth even in a bear market as Bybit has proven by increasing our market share in Q4 2022. We expect to benefit from the ongoing consolidation process in our industry that will reward the strongest and most transparent crypto exchanges.”
So, what would the path be for Bybit to undertake to ensure that it gets to the top? And does the statistical perspective support the claim? The following is an account of what was determined employing facts:
1. Bybit Will Continue to Experience Exponential Growth
In spite of a general downward trend in the market, the report that was conducted by CryptoCompare demonstrates that Bybit implemented a change in its business strategy that fueled additional expansion in trading volume and market share. Bybit has undertaken the following measures that have contributed to its progress, notably:
Zero-fee trading program: On September 6, 2022, there was a complete implementation of zero-fee trading across all Spot trading pairs.
A newly reformed branding: Bybit has introduced a new brand design, complete with a standardized layout and improved brand language, with the intention of assuring users of its unwavering dedication to excellence. Bybit is offering only the very best and most dependable services to traders of all kinds in order to increase revenues through the introduction of novel products and improved business prospects.
Exchange security and transparency offering: The publication of the Proof of Reserves (PoR) report and the Merkle Tree on December 10, 2022, with the goal of boosting user confidence in the exchange.
Trend capturing: Bybit has noticed a shift in the confidence that users have in CEXs, as well as an increase in the appeal of decentralization. The prompt reaction that resulted in the release of Bybit’s Web3 wallet and the integration of ApeX Pro bridged the gap between trading in a CeFi and DeFi environment, making it possible for everyone to experience financial empowerment and inclusion.
2. Bybit to Flourish with Security, Transparency & Proof-of-Reserves
The failure of Terra, BlockFi, and FTX continues to cause a lot of people to scratch their heads. The persistent spread of fear, uncertainty, and doubt (FUD) compels an increasing number of retail and institutional traders to examine an exchange’s security measures, Proof of Reserves, infrastructure configurations, and community interaction more closely. A closer look at Bybit’s efforts to reassure its users reveals the following:
Proof of Reserve: Bybit is one of the very few cryptocurrency exchanges that can offer a clean PoR, which demonstrates that the funds kept in reserves exactly match the liabilities.
Security: Bybit has increased its security measures, including the implementation of two-factor authentication and 24-hour customer care, in response to the growing prevalence of hacking. These measures are designed to assist consumers who are experiencing difficulties. The bug bounty program was initiated in order to incentivize “white hat” hackers to locate and fix flaws in existing security systems.
Custodial and cold wallet solution: Backend security measures are implemented by Bybit. These methods include cold wallet storage, the provision of an option for custodian fund protection, and the geographical spread of private user keys in order to reduce the risk of failure at a central point.
3. Bybit’s Vision Supported by Growing Web3 Investments
Bybit is here to stay, according to CEO Ben Zhou, and the company is working hard to improve so that it may be in a strong position to satisfy the ever-evolving requirements of its users. Its changing business atmosphere has led to an increasing expansion in Web3 product innovation, including the introduction of the most recent Web3 wallet, which helps bridge the divide between centralized and decentralized systems.
Whether you choose to believe it or not, cryptocurrency exchanges are still really important for users, and there is a significant opportunity there. Considering this, Bybit’s main objective is to build a crypto ark that will facilitate users’ progress toward improved dependability, products, and opportunities in the overall crypto landscape.