Coinbase Suspends Numerous Trading Pairs to Boost Liquidity

U.S.-based crypto exchange, Coinbase, has halted 80 non-USD trading pairs as part of a strategy to enhance liquidity on its platform. This suspension affects pairs involving cryptocurrencies such as Bitcoin, stablecoins like Tether, and fiat currencies, including the euro.

In an announcement on Oct. 16, Coinbase clarified that the decision to remove these trading pairs seeks to optimize “overall market health and streamline liquidity.” These pairs were discontinued across various platforms, including the Coinbase exchange, Advanced Trade, and Coinbase Prime, effective 19:30 UTC on Oct. 16.

This move is consistent with Coinbase’s earlier announcement in early October about its intentions to suspend certain markets. The exchange further stated that affected users could continue trading in its “more liquid USD order books” leveraging the exchange’s USD Coin balances.

Coinbase emphasized the limited impact of these suspensions, pointing out that the affected markets constitute an insignificant portion of the exchange’s overall trading volume. This is not the first instance of such a move by Coinbase. In mid-September, the platform had halted another 41 non-USD trading pairs, attributing the decision to similar liquidity concerns. Notably, while several USDT-related trading pairs were removed, none involving USDC (a stablecoin collaboratively developed by Coinbase and Circle) were affected.

These decisions to streamline liquidity follow a noticeable dip in Coinbase’s trading volumes this year. Data from cryptocurrency market analyst CCData reveals a significant 52% drop in Coinbase’s spot trading volumes for Q3 compared to figures from 2022.

Other leading cryptocurrency exchanges, such as Binance, are also witnessing a decline in spot market dominance. As per CCData, Binance’s share of the spot market dipped for the seventh consecutive month in September 2023, descending from 55% at the start of the year to 34% by September 2023.