Analyst forecasts the company will report 7th declining quarter in a row.
Trading
volumes on Coinbase (NASDAQ: COIN) have fallen so sharply in the past quarter that they are now
below the levels seen in April 2021, when the exchange debuted on Nasdaq.
According to CCData, trader activity was valued at $76 billion, a decrease of 52% compared to the previous year's third quarter.
For Coinbase, Trading
Volume Is a Significant Revenue Driver
The
exchange itself admits that transaction revenue accounts for more than half of
its total income. When investors remain inactive and trading volumes decline,
the platform's profits also shrink considerably.
Although
Coinbase remains one of the larger exchanges in terms of reported volumes, it
has seen a significant drop in this key metric over the past year. This trend
also affects other platforms and is a result of lower cryptocurrency prices,
scandals, and high-profile exchange collapses.
Coinbase
achieved record volumes in May 2021 when cryptocurrency prices soared to
historic highs. In that single month, turnover reached $259 billion. However, it
was more than ten times lower in September, at $20
billion.
Analysts
are already more than certain that the company will report its seventh
consecutive declining quarter when it releases its report next month. For
example, Mizuho Securities believes that Q3 2023 revenue will be 10% lower than
official forecasts.
Despite
this, Coinbase's stock has risen by nearly 120% this year. Some might say that the
shares have nowhere to fall, as they have lost over 80% of their value since
their debut in 2021. However, the chart shows that since May 2022, they have been
consolidating in the same volatility range and currently cost just under $80.
Singapore and Bermuda, but
Not Europe
The San
Francisco-based cryptocurrency exchange has been strategically expanding its
global footprint. After a year of provisional approval, the company recently
secured a Major Payment Institution license from Singapore's Monetary
Authority. This follows Coinbase abandoning its earlier plan to enter the
Singaporean market by acquiring the now-defunct Zipmex exchange in 2022.
In addition
to its Singaporean venture, Coinbase has received regulatory approval from
Bermuda's financial authority, allowing it to offer perpetual futures trading
to qualified non-US customers. This new offering will be available on the
Coinbase Advanced platform in the near future.
However,
the company has put its European expansion on hold, specifically its plans to
acquire FTX Europe. Initially aimed at breaking into the European derivatives
market, the acquisition was suspended due to regulatory hurdles in the US. FTX
Europe, known for its significant share in the European trading volumes, was a
key target for Coinbase, as it holds nearly 75% of the global crypto
derivatives trading volume.
Trading
volumes on Coinbase (NASDAQ: COIN) have fallen so sharply in the past quarter that they are now
below the levels seen in April 2021, when the exchange debuted on Nasdaq.
According to CCData, trader activity was valued at $76 billion, a decrease of 52% compared to the previous year's third quarter.
For Coinbase, Trading
Volume Is a Significant Revenue Driver
The
exchange itself admits that transaction revenue accounts for more than half of
its total income. When investors remain inactive and trading volumes decline,
the platform's profits also shrink considerably.
Although
Coinbase remains one of the larger exchanges in terms of reported volumes, it
has seen a significant drop in this key metric over the past year. This trend
also affects other platforms and is a result of lower cryptocurrency prices,
scandals, and high-profile exchange collapses.
Coinbase
achieved record volumes in May 2021 when cryptocurrency prices soared to
historic highs. In that single month, turnover reached $259 billion. However, it
was more than ten times lower in September, at $20
billion.
Analysts
are already more than certain that the company will report its seventh
consecutive declining quarter when it releases its report next month. For
example, Mizuho Securities believes that Q3 2023 revenue will be 10% lower than
official forecasts.
Despite
this, Coinbase's stock has risen by nearly 120% this year. Some might say that the
shares have nowhere to fall, as they have lost over 80% of their value since
their debut in 2021. However, the chart shows that since May 2022, they have been
consolidating in the same volatility range and currently cost just under $80.
Singapore and Bermuda, but
Not Europe
The San
Francisco-based cryptocurrency exchange has been strategically expanding its
global footprint. After a year of provisional approval, the company recently
secured a Major Payment Institution license from Singapore's Monetary
Authority. This follows Coinbase abandoning its earlier plan to enter the
Singaporean market by acquiring the now-defunct Zipmex exchange in 2022.
In addition
to its Singaporean venture, Coinbase has received regulatory approval from
Bermuda's financial authority, allowing it to offer perpetual futures trading
to qualified non-US customers. This new offering will be available on the
Coinbase Advanced platform in the near future.
However,
the company has put its European expansion on hold, specifically its plans to
acquire FTX Europe. Initially aimed at breaking into the European derivatives
market, the acquisition was suspended due to regulatory hurdles in the US. FTX
Europe, known for its significant share in the European trading volumes, was a
key target for Coinbase, as it holds nearly 75% of the global crypto
derivatives trading volume.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
๐ฅCatch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
๐ฅCatch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 โ the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether youโre in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
๐ Don't miss out โ secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
๐ฃ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
๐ LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
๐ Facebook: https://www.facebook.com/FinanceMagnatesEvents
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๐ฆ Twitter: https://twitter.com/F_M_events
๐ฅ TikTok: https://www.tiktok.com/@fmevents_official
โถ๏ธ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 โ the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether youโre in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
๐ Don't miss out โ secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
๐ฃ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
๐ LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
๐ Facebook: https://www.facebook.com/FinanceMagnatesEvents
๐ธ Instagram: https://www.instagram.com/fmevents_official
๐ฆ Twitter: https://twitter.com/F_M_events
๐ฅ TikTok: https://www.tiktok.com/@fmevents_official
โถ๏ธ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!