80 Non-USD Trading Pairs Suspended by Coinbase to Strengthen Liquidity

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.

Aaron S., Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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