Shares in the US cryptocurrency exchange Coinbase fell by around 13% on Tuesday after the firm reported a massive drop in its trading volume. The brand’s financial reports showed how trading volume fell to $327 billion from $462 billion the previous quarter. The fact that the third-quarter revenues missed analysts’ estimates sent shockwaves through the crypto world and served as a further example of just how volatile the market has become.
Coinbase also suffered a dip in the number of monthly transacting users in the third quarter. This saw the number of users declining to 7.4 million from 8.8 million in the second quarter. However, Coinbase enjoyed a growth in the overall number of verified users that rose to 73 million.
The increase in users has been put down to the unprecedented popularity of cryptocurrencies, and Coinbase’s decision to list the Shibi Inu crypto was pivotal in encouraging many more people to download the brand’s app. Interestingly, there was a shift away from investors using Coinbase to merely trade Bitcoin and Ethereum, with a 9% increase to trade other cryptocurrencies instead.
The disappointing figures were blamed on a variety of reasons such as market turbulence, and lower crypto prices in the third quarter. The fall in market price of cryptocurrencies such as Bitcoin has been attributed to increased oversight on how crypto products could be traded online in a variety of territories. Such moves have hindered the cryptocurrency market that was started to enjoy mainstream appeal with many businesses investing in Bitcoin.
Coinbase has enjoyed a phenomenal growth rate to become the largest crypto exchange by trading volume in the US. The US company was launched in 2012 and it currently operates in over 100 countries and features a wide range of digital assets such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
As of 2020, Coinbase’s revenue was $1.14 billion, but things went up a level in April 2021 when the company went public on the NASDAQ exchange. While there was an initial slump in the share price after the IPO, Coinbase stock is now up by around 40% since it started trading. With leading cryptocurrencies of Bitcoin and Ethereum hitting new all-time highs this week, it suggested that there should be a revival in Coinbase’s fortunes.
The brand has also announced plans to diversify its output to create a marketplace in which its users could trade nonfungible tokens (NFTs). Plus there are plans to let Coinbase customers deposit checks into their trading accounts. Finally, with the news that Coinbase would be assisting Facebook with the creation of its new digital crypto wallet, there are plenty of reasons to be optimistic about the brand’s future.
In a letter to its shareholders, Coinbase stated that it hoped investors would understand the volatility of crypto markets and realize that the cryptocurrency exchange is a long-term investment. All of which suggests that Coinbase has the forward-thinking attitude required to ride the current storm.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.