Coinbase, a popular U.S.-based cryptocurrency exchange, has taken steps to improve liquidity on its platform by removing several trading pairs. This move is in line with their strategy to enhance the overall health of the market and consolidate liquidity.

On October 16, 2023, Coinbase suspended 80 trading pairs that did not involve the U.S. dollar (non-USD trading pairs). These trading pairs included cryptocurrencies like Bitcoin (BTC), stablecoins such as Tether (USDT), and even traditional fiat currencies like the euro.

The aim of these removals, as announced by Coinbase, is to create a healthier market environment and increase liquidity. These trading pairs were removed from the Coinbase exchange as well as other platforms like Advanced Trade and Coinbase Prime at 19:30 UTC on October 16.

It’s important to note that these removed trading pairs represented only a small portion of Coinbase Exchange’s overall trading volume. Users affected by these changes can still trade in the more liquid U.S. dollar order books by using Coinbase’s stablecoin, USD Coin (USDC), which is pegged to the U.S. dollar.

Coinbase has been gradually suspending trading pairs over time to address liquidity concerns. In mid-September, they removed 41 non-USD markets for similar reasons. Notably, none of the trading pairs involving USDC, a stablecoin developed in partnership between Coinbase and Circle, were suspended.

These efforts to enhance liquidity come in response to a decline in Coinbase’s trading volumes throughout the year. According to data from CCData, Coinbase’s spot trading volumes for the third quarter of 2023 dropped by 52% compared to the same period in 2022. This trend is not unique to Coinbase, as other major cryptocurrency exchanges like Binance have also experienced a decline in their spot market dominance, falling from 55% in early 2023 to 34% in September 2023, according to CCData