Poloniex sees slight bump in market share under new stewardship, research shows

Poloniex, the cryptocurrency exchange formerly helmed by Circle, is seeing signs of relief following its acquisition by new leadership. 

Poloniex, which was among the largest exchanges during the 2017 crypto boom, announced in October that it would spin-out from Circle, 18-months after the Boston-based firm said it had acquired it for $400 million. Since the acquisition, Poloniex has struggled to capture more than a few percentage points of market share; a fate Circle has attributed to a complex regulatory environment in the U.S. 

As part of the spin-out, Poloniex said it would service non-U.S. traders and focus internationally with the help of a $100 million investment from a consortium, which as The Block first reported, included Tron founder Justin Sun. It appears since the spin-out, Poloniex has seen a rebound in its market share, hitting above 2% market share on certain days for the first time in several months. Here's a chart from The Block's Matthew Yamamoto:

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Still, it's not exactly clear if the signs of new life can be attributed to the new leadership or its zero-fee structure, as Yamamoto noted

"Poloniex has hovered around 1% market share for most of the year," he wrote.

He continues (emphasis added):

"Since its announced spin-out from Circle last month, Poloniex has temporarily reduced its spot trading fees to 0% as part of a promotion to increase traffic. As a result, Poloniex has had its market share increase to nearly 2%, although it's uncertain how sustainable this will be once the promotion ends on December 31."

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].