Coinbase Halts 80 Non-USD Pairs to Focus on Liquid Markets

October 18, 2023 – Coinbase, one of the leading cryptocurrency exchanges, has declared the suspension of 80 non-USD trading pairs across its platforms, including Coinbase Exchange, Advanced Trade, and Coinbase Prime, according to an announcement made on October 17th. This move comes in the wake of the exchange’s strategy to enhance liquidity and trading efficiency by concentrating on its USD markets.

The suspended pairs span a wide range of cryptocurrencies, including major ones like Bitcoin (BTC) and Ethereum (ETH), and extend to various stablecoins such as Tether (USDT). They also cover numerous fiat currencies, including the Euro, affecting pairs such as ACH-USDT, ARPA-EUR, BAND-BTC, and C98-USDT, among others.

This decision aligns with Coinbase’s earlier communication in October about its intent to discontinue certain less liquid markets. Despite this, the exchange assures its users that trading for these assets can still proceed through its “more liquid USD order books,” suggesting traders utilize their USDC balances for this purpose.

This isn’t the first instance of such a move by Coinbase. In September, the platform discontinued 41 non-USD pairs, citing similar liquidity and efficiency reasons. It’s noteworthy that none of the affected markets involved USDC, a stablecoin jointly created by Coinbase and Circle, even though several USDT pairs were removed.

In a turn of events, despite the reduction in trading pairs, Coinbase has reinstated XRP trading following Ripple’s legal victory in its ongoing case with the United States Securities and Exchange Commission (SEC).

However, it’s not all smooth sailing for the crypto exchange. Despite potentially gaining market share due to regulatory issues plaguing competitor Binance, Coinbase faces its challenges with a significant dip in trading volume. Reports indicate a stark 52% decrease in spot trading in the third quarter of 2023, the lowest since its much-publicized Nasdaq listing in April 2021, a period that preceded the crypto market’s peak.

This strategic contraction of trading pairs could be Coinbase’s effort to consolidate its market position, streamline operations, and possibly regain momentum amidst a dynamic and often unpredictable cryptocurrency landscape.