Coinbase Halts 80 Non-USD Trading Pairs to Boost Liquidity

Coinbase Halts 80 Non-USD Trading Pairs to Boost Liquidity

Time Stamp: October 17, 2023 7:23 AM
Source Node: 2943816

Key Takeaways

  • Coinbase suspended 80 non-USD trading pairs to improve liquidity and overall market health.
  • This move is part of a broader strategy, as Coinbase previously removed 41 non-USD trading pairs in mid-September.
  • The crypto exchange's spot trading volumes have decreased by 52% in the third quarter of this year compared to 2022.

Coinbase, a leading cryptocurrency exchange in the United States, discontinued 80 non-USD trading pairs.

On October 16th, Coinbase announced that the trading pairs were suspended to "consolidate liquidity" and enhance "overall market health." The affected pairs were linked to several high-profile cryptocurrencies, such as Bitcoin and fiat currencies like the euro.

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These trading pairs were taken off Coinbase's primary exchange and other trading services like Advanced Trade and Coinbase Prime.

This move aligns with a broader initiative by the crypto exchange to optimize its trading infrastructure. Announced earlier in October, the plan involves a move toward "more liquid USD order books."

Coinbase reassured users that they could still engage in market trades using the crypto exchange's USD Coin balances. The company highlighted that the terminated markets constituted only a minor fraction of the platform's total trading volume.

This isn't the first time Coinbase has closed some trading pairs. It also removed some pairs in mid-September. Notably, none of the suspended pairs featured USDC, a stablecoin jointly created by Coinbase and Circle.

This liquidity-boosting strategy emerges as Coinbase grapples with falling trading volumes. Data from cryptocurrency market analytics firm CCData reveals that the crypto exchange's spot trading volumes nosedived by 52% in the third quarter of this year compared to 2022.

This decline mirrors a broader industry trend, as other major players like Binance have also experienced a drop in market share.

Coinbase's recent suspension of 80 non-USD trading pairs is a calculated effort to shore up liquidity and market stability. While the platform has faced declining trading volumes, this action forms part of a broader strategy to strengthen its position in an increasingly competitive market. As the landscape of cryptocurrency trading evolves, Coinbase's steps to focus on more liquid USD markets could serve as a blueprint for other crypto exchanges.

Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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