Coinbase, a renowned crypto exchange based in the United States, witnessed a great decline in transaction revenues during the 3rd quarter of 2022 amid a wider market decay, however, remained successful in cutting its losses by 50 percent in comparison with the previous quarter. On the 3rd of this month, the platform released its shareholder letter, indicating that a decrease has taken place in the transaction revenue of the firm.
Coinbase sees a 44% Decline in Transaction Revenues in Q3
As a result, the transaction revenue has dropped from $655.2M (that was witnessed in this year’s 2nd quarter) to $365.9M at present. This denotes a drop of approximately forty-four percent. The firm referred to the unfortunate macro conditions. The average market capitalization of the overall crypto industry has fallen by almost thirty percent.
In addition to that, the trading volumes have been moving away from the U.S. because of the deficiency in regulatory transparency being prominent among the reasons at the back of the respective drop. Another cause in this respect has been mentioned as the reduction in the number of retail clients possessing the digital assets. Moreover, the traders have been utilizing the rest of the venues with additionally complicated products during the bear market.
Binance CEO Seems Bullish Despite Downturn
Notwithstanding the unfavorable statistics, Brian Armstrong (the co-founder and CEO of Coinbase) expressed a bullish stance during the platform’s earning call for the 3rd quarter of 2022. He mentioned that the regulatory atmosphere could be among the largest unlocks to the mounting market and even permit prices to regain their high position back.
He added that there is still a chance that the prices could go up again at some time. As per him, that is not definite however the possibility remains. Alesia Haas, the chief financial officer at Coinbase, while appearing in an earnings call, was additionally asked if the consumers can expect positive earnings in the conclusive quarter this year.
While responding to this, Haas disclosed that the firm’s chief focus was not that and they are pursuing to keep on investing to witness advancement while decreasing the losses. The executive was of the view that during the bull runs there are chances of profits whereas during the downturns prudent losses are expected.
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