Coinbase, a US cryptocurrency exchange, may see its third-quarter trading volume reach an all-time low. Bloomberg reported on the 11th based on analysis by digital asset data provider CCData.
According to the report, Coinbase's spot trading volume plummeted to less than half of its all-time low in the third quarter, showing how quickly investor interest in cryptocurrencies has dried up.
According to data analyzed by CCData, Coinbase's spot trading volume was about $76 billion, down 52% from the same period last year. This figure is the lowest since the company was just before its Nasdaq listing in April 2021, or just a few months before cryptocurrency market prices peaked.
Trading volume is an important metric for cryptocurrency exchanges. Coinbase said that transaction revenue accounted for 54% of its total revenue in the second quarter.
Owen La, an analyst at financial services firm Oppenheimer & Co., who rates the stock as market perform, said Coinbase is expected to post its seventh consecutive quarterly loss when it reports earnings in November, commenting that "it was a tough quarter overall."
According to Mizuho Securities, Coinbase's trading volume fell short of the consensus estimate of $86 billion (about 1.286 trillion yen) and revenue was revised down to 10% below expectations. Also, analyst Ryan Coyne said that he does not expect any significant improvement in the current fourth quarter.
The reason behind Coinbase's decline in trading volume seems to be regulatory issues with the SEC (U.S. Securities and Exchange Commission). The company has been accused by the SEC of operating an illegal exchange and is fighting the charges in court.
However, Coinbase likely gained market share in the quarter. According to CCData, Coinbase's share of total spot trading volume rose to 5.7% from 4.2% in the same period last year.
Coinbase's stock price was trading at around $350 after it was listed on the Nasdaq in 2021, but at the end of last year it was trading at $35, down 86%. This year it has doubled to about $80.
Source:Report
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