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.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 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:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 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:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ 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!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 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:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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