Coinbase – which happens to be the largest US crypto platform – registered nearly $76 billion in spot trading volume, according to a new Bloomberg report.
This marks a 52% decrease compared to the same period last year, and it is likely the lowest figure recorded since well before the company’s high-profile direct listing on the Nasdaq Stock Market in April 2021, which occurred just months before the peak in crypto prices.
- Trading volume serves as a vital metric for exchanges, and for Coinbase, the largest share of its revenue stems from trading fees.
- In the second quarter of the year, Coinbase reported that revenue generated from transactions made up 54% of its total revenue.
- This decline is part of a broader trend observed over a year in the digital asset industry, driven by a series of scandals, bankruptcies, and regulatory interventions.
- Oppenheimer & Co. analyst Owen Lau noted that “overall, it looks like a challenging quarter” for Coinbase.
- The crypto exchange has been embroiled in a high-profile legal showdown with the SEC, with the financial regulator filing a motion to oppose Coinbase’s motion to dismiss the case.
- Despite the setbacks, Coinbase managed to expand its market presence in the previous quarter, notably as its rival Binance faced heightened regulatory scrutiny in the country as well.
- Earlier this month, the CZ-led crypto exchange’s share of the spot market took a hit for the seventh consecutive month. This share appears to have been captured by its competitors, including Coinbase.
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