Coinbase’s spot trading volumes have dropped significantly, signaling a notable shift in the cryptocurrency trading landscape.
According to a new report from Bloomberg, Coinbase — which happens to be the largest cryptocurrency platform in the United States — has close to $76 billion in spot trading volume.
That’s down 52% from the same period last year, and it’s likely the lowest number the company has recorded since its high-profile direct listing on the Nasdaq stock market in April 2021, just months before the peak of cryptocurrency prices.
Trading volume is an important metric for exchanges, and for Coinbase, the largest share of its revenue comes from trading fees.
In the second quarter of this year, Coinbase reported that trading generated 54% of its total revenue.
The decline is part of a broader trend observed in the digital asset industry over the year, driven by a series of scandals, bankruptcies and regulatory interventions.
Oppenheimer & Co. analyst Owen Lau noted that “overall, this looks to be a challenging quarter” for Coinbase.
The cryptocurrency exchange is embroiled in a high-profile legal showdown with the SEC, with the financial regulator filing a motion opposing Coinbase’s motion to dismiss the case.
Despite the setbacks, Coinbase still managed to expand its market share in the last quarter, especially as its competitor Binance also faces greater regulatory scrutiny in the country.
Earlier this month, Czech-led cryptocurrency exchanges took a hit in spot market share for the seventh month in a row. That share appears to have been taken by competitors including Coinbase. #Coinbase #IPO #交易量