Recently, HTX (formerly known as Huobi) achieved a significant milestone by surpassing US-based Coinbase in daily spot trading volumes. Justin Sun, a prominent figure in the TRON blockchain and an investor in HTX, proudly shared this accomplishment on social media. The platform traded $1.81 billion worth of cryptocurrencies in a 24-hour period, outshining Coinbase’s $1.58 billion in trading volume.
Despite HTX’s momentary triumph, recent data from CoinGecko indicated that Coinbase has reclaimed its position at the top. Over the past 24 hours, Coinbase processed a staggering $2.2 billion in trading volume, solidifying its position as the third-largest crypto exchange globally, trailing only Bybit and OKX. On the other hand, HTX managed to trade around $2.1 billion during the same period, placing it behind Coinbase.
HTX, one of the oldest and largest cryptocurrency exchanges globally, commemorated its 10-year anniversary in September 2023 by rebranding from Huobi to HTX. However, this rebranding was not without controversy. Many members of the crypto community drew parallels between HTX and the now-defunct exchange FTX, especially with regards to the new name. The letter ‘H’ represents Huobi, ‘T’ symbolizes Justin Sun’s TRON blockchain project, and ‘X’ signifies the exchange itself.
Coinbase’s temporary dip in spot trading volume coincided with a legal battle in the United States. The Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging that the exchange operated as an unregistered national securities exchange, broker, and clearing agency, thus violating regulatory requirements. Despite Coinbase’s efforts to defend its practices in court, a critical setback occurred in March 2024 when a US court rejected the exchange’s motion to dismiss the SEC’s case.
In response to the court’s ruling, Coinbase took a strategic legal step by filing a memorandum in support of its interlocutory appeal in May 2024. This appeal aims to overturn the court’s decision and potentially alleviate some of the legal pressures faced by the company. Additionally, Coinbase customers filed a lawsuit against two of the exchange’s subsidiaries earlier in the year, accusing them of repeatedly violating securities laws since the inception of Coinbase.
The crypto exchange landscape is constantly evolving, with platforms like HTX and Coinbase vying for dominance. While HTX’s momentary victory over Coinbase captured headlines, the resurgence of the latter underscores the competitive nature of the industry. As legal battles unfold and regulatory scrutiny intensifies, both exchanges must navigate these challenges to secure their positions in the market.
