Coinbase, a major cryptocurrency exchange, has decided to remove seven additional trade pairs for some of its supported currencies.
They believe that simplifying the trading options will enhance the trading experience for users and increase liquidity. On June 26, Coinbase Exchange announced through a tweet that it will suspend trading for several markets starting at around 9 AM PT on June 27, 2023.
Cryptocurrency exchanges often remove specific trading pairs for various reasons, such as consolidating liquidity. By limiting the number of trading pairings, exchanges aim to focus on the most popular and actively traded assets.
Reports suggest that Coinbase’s market share in the growing ether (ETH) staking industry has decreased due to increasing regulatory pressure on its staking business.
Data from 21Shares reveals that Coinbase’s participation in ETH staking has dropped to 9.7%, the lowest level since May 2021. This decline is significant compared to the 13.6% share observed on April 12.
Considering Coinbase’s tweet in the context of the charges brought against the company by the U.S. Securities and Exchange Commission (SEC) on June 6 is important.
The SEC categorized at least 13 cryptocurrencies listed on Coinbase and its staking service as securities or investment contracts. On June 7, Coinbase’s chief legal officer, Paul Grewal, clarified that the company has no intention of removing any of these assets from its platform.
This demonstrates Coinbase’s commitment to keeping the listed cryptocurrencies and continuing its staking service.
Binance.US’s plan to reduce trading pairs
While Coinbase has affirmed its decision not to delist assets, its well-known rival, Binance.US, has taken a different approach.
In response to its SEC accusations on June 5, Binance.US announced plans to delist multiple trading pairs and temporarily halt over-the-counter (OTC) trading activities. Binance.US, the U.S. section of the popular cryptocurrency exchange Binance, intends to reduce the number of trading pairs on its site from over forty to only 226.
