HomeCryptoCoinbase's volume and users down in Q3

Coinbase’s volume and users down in Q3

Today, Tuesday 9 November, at the close of the US markets, the cryptocurrency exchange Coinbase will publish its Q3 results, featuring revenues, volumes, users and more, for July, August and September.

Coinbase, pending Q3 results

“Coinbase’s platform trading volumes are a key metric given the majority of company revenue comes from retail and institutional trading fees”.

This is what John Todaro, research analyst at investment finance firm Needham & Co. said in a note to his clients, with a buy recommendation for the Nasdaq-listed stock.

Leading analysts expect Coinbase to underperform the previous quarter on both volume and earnings per share. The consensus forecast for EPS (earnings per share) is $1.79, about half the second quarter’s figure of $3.45.

Coinbase volumes and users down

The exchange’s volumes are expected to be 37% lower in the third quarter than in the second quarter, according to Bloomberg.

In the second quarter, the company had reported $462 billion in trades on the platform. This quarter, trading is expected to be $313 billion.

The number of monthly active users is also expected to fall to 7 million, down from 8.8 million in the second quarter, as a result of increasingly fierce competition.

However, these forecasts should not affect the share price, which has gained 35% since the end of September.


Coinbase has invested $500 million in cryptocurrencies

In August, Coinbase announced plans to invest $500 million in cryptocurrency assets, Ethereum, Bitcoin and DeFi protocols supported by the platform.

This move was clearly intended to strengthen the company’s focus in the crypto world. The CEO Brian Armstrong has always been very committed to strengthening the mass adoption of cryptocurrencies, which must also pass through a precise regulation of crypto assets.

A few days ago, Coinbase submitted a draft proposal for clearer regulation of the crypto market to the US Congress.

On 12 October, the company also announced on its blog that it is ready to launch its own service for NFTs, the new market for non-fungible tokens that is literally revolutionizing the world of decentralized finance.

“Today, we’re announcing Coinbase NFT, a peer-to-peer marketplace that will make minting, purchasing, showcasing, and discovering NFTs easier than ever. Just as Coinbase helped millions of people access Bitcoin for the first time in an easy and trusted way — we want to do the same for the NFTs”.

Vincenzo Cacioppoli
Vincenzo Cacioppoli
Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.