Yesterday crypto exchange giant Coinbase reported that its revenue had fallen more than 60% on the same quarter last year, leading to a $1.1bn loss — the company's second in a row.
Off-base
Coinbase's role as a crypto exchange operator has been made a lot harder in the last 6 months as cryptocurrencies have slumped. Indeed, 42 of the 50 largest cryptocurrencies have fallen in value this year. The two largest — Bitcoin and Ethereum — have both lost more than half of their value in the year-to-date.
Falling crypto markets have meant smaller transaction revenues for Coinbase, but it hasn't just been about the fall in prices. The company's active userbase — those making at least one trade per month — also fell, from 11.2m at the end of last year to 9m today. Taken together, this meant total trading volumes on the platform (in USD) fell by more than half.
As the largest US-based crypto exchange, and one of the 3 largest globally, Coinbase's results are a bellwether for the crypto sector more generally — but it hasn't been all bad news. Coinbase's total userbase did pass nine-figures, with 103 million total registered users now on the platform, and a new partnership with asset management giant BlackRock that could help the company reach an entirely new set of customers.
