Coinbase’s quarterly crypto trading volume likely lowest since before public debut
Coinbase Global Inc.’s spot trading volume likely plummeted by more than half during the recently completed third quarter.
The largest US digital-asset platform registered about $76 billion in spot trading volume, a drop of 52% from the year-ago period, according to data compiled by researcher CCData. The tally is also likely the least since before the company’s much ballyhooed direct listing on the Nasdaq Stock Market in April 2021, or just months before prices of cryptocurrencies peaked.
Trading volume is a key metric for exchanges, with Coinbase deriving the biggest portion of its revenue from trading fees. In the second quarter, Coinbase said so-called transaction revenue accounted for 54% of total revenue. The decline is part of a year-long slide across the crypto industry following a spate of scandals, bankruptcies and regulatory actions.
“Overall it looks like a challenging quarter” for Coinbase, said Owen Lau, an analyst at Oppenheimer & Co., who has a “market perform” rating on the company’s shares.
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View Details»Coinbase is forecast to post a seventh consecutive quarterly loss when it releases results on Nov. 2, according to analysts surveyed by Bloomberg. A Coinbase spokesperson didn’t return a request for comment.
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Even with the decline, Coinbase likely gained market share in the quarter while industry leader Binance came under increased regulatory scrutiny. Coinbase’s percentage of overall
