Coinbase blames sagging crypto volumes as revenue plummets - 04 noiembrie 2022
The US-listed company acknowledged “another tough quarter” as it reported net revenue of $576mn, down from more than $1.2bn a year before and from $803mn in the previous quarter. Coinbase lost $545mn in the quarter, compared to a net profit of $406mn a year before. The plunge in crypto markets earlier this year continues to take its toll on trading venues such as Coinbase.
Tokens such as bitcoin and ether have lost about 70 per cent of their value since their all-time high last year. Trading volumes and monthly transacting users at Coinbase dropped by 27 per cent and 6 per cent, respectively, from the second to the third quarter. The price crash was followed by rangebound trading for popular crypto tokens. Recent figures shared by data provider CryptoCompare showed that average annualised volatility for bitcoin hit its lowest point since October 2020. The lack of price action has placed renewed pressure on Coinbase, which described crypto asset volatility as a “key driver of our retail trading volume” in a letter to shareholders.
(US.COIN)