HTX Exchange, formerly known as Huobi, achieved a major milestone on May 27, surpassing US-based Coinbase in daily spot trading volumes for the first time. Justin Sun, an influential figure in the crypto space and an investor at HTX, shared the news on social media. HTX traded $1.81 billion worth of cryptocurrencies in 24 hours, exceeding Coinbase’s $1.58 billion. However, according to recent data from CoinGecko, Coinbase has once again taken the top spot with a trading volume of $2.2 billion in the past 24 hours, making it the third-largest crypto exchange globally.
It could be recalled that the HTX exchange celebrated its 10-year anniversary in September 2023 and rebranded from Huobi to HTX. The rebranding was met with controversy, as many in the crypto community drew parallels between HTX and the collapsed exchange FTX due to the new name’s association with Huobi, Tron, and the exchange itself. HTX’s recent milestone of surpassing Coinbase in trading volume has garnered attention, although the platform is currently behind Coinbase in terms of overall spot trading volume.
The temporary decline in Coinbase’s spot trading volume coincided with the exchange’s legal battle with the United States Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Coinbase, alleging that the exchange offered unregistered securities and failed to comply with regulatory requirements. Despite Coinbase’s efforts to defend its business practices in court, a US court denied its motion to dismiss the SEC’s case in March 2024, allowing the SEC to continue pursuing its allegations against the exchange.
In response to the legal challenges, Coinbase took a strategic step by filing a memorandum in support of an interlocutory appeal in May 2024 to overturn the court’s decision and alleviate some of the legal pressures facing the company. Additionally, Coinbase customers filed a lawsuit against two of the company’s subsidiaries for allegedly violating securities laws since the inception of the exchange. These legal battles have raised concerns about the regulatory environment for crypto exchanges in the United States and the potential impact on the industry’s growth.
Despite the legal challenges and regulatory scrutiny, HTX and Coinbase remain major players in the global cryptocurrency market. HTX’s recent milestone of surpassing Coinbase in spot trading volume underscores the exchange’s growing presence and market share. As the crypto industry continues to evolve and face regulatory challenges, exchanges like HTX and Coinbase will need to navigate the complex legal landscape to ensure compliance and maintain their position in the market.
In conclusion, HTX’s achievement of surpassing Coinbase in daily spot trading volume marks a significant milestone for the exchange and highlights its continued growth in the competitive crypto market. While Coinbase faces legal challenges and regulatory scrutiny, both exchanges play a vital role in facilitating the buying and selling of cryptocurrencies for users worldwide. As the industry matures, exchanges will need to adapt to changing regulatory requirements and legal standards to foster trust and stability in the market.
