Coinbase trade volumes drop by 44%

Coinbase has seen a huge drop in trading value during the first quarter with transactions falling by more than 40%.

The exchange is also reporting “worse than expected” earnings, all attributed to the crash of the crypto bull market, with the price of Bitcoin (BTC) going from an all-time high in November to just under $30,000 earlier in May.

Coinbase similarly reported net losses of $430m, a whole lot more than originally thought by Wall Street analysts who conservatively put the company’s expected losses at $47m.

Revenue also declined rapidly to $1.bn, down 35% and missed its $1.5bn target.

With trading volume sinking by over 44% compared to last quarter, Coinbase has been experiencing the effects of what analysts have described as “crypto winter”. The present results are in stark contrast with what was achieved during the bull market.

Coinbase has been aware of the challenges it now faces for a while now. As a result, the company has attempted to create new avenues of revenue in the blockchain space.

To this end, the exchange launched a non-fungible token marketplace last week and is hoping to take on OpenSea, the leader in the space as of now.

Coinbase is also hoping to offer crypto derivatives, but this may face legal pushback from the US Securities and Exchange Commission.

Coinbase’s address to its shareholder ended with a #wagmi hashtag, which has been known in crypto vernacular as “We are all gonna make it”.

In the meantime, you can play with cryptocurrencies at great websites such as 1xBit, FortuneJack and Bitcasino.io.

Source

Updated: 05/11/2022 — 11:00

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