Shares of crypto exchange Coinbase lose nearly 9% on the stock market, recording one of the worst performances among loss-making stocks.
DowJones starts the week climbing after a day marked by high volatility caused mainly by the collapse of Tech.
Coinbase stock experiences a setback
Coinbase (COIN) is certainly the longest-running exchange platform, but while it was once number one in terms of volume it is now relegated to third place.
The platform’s launch on Wall Street occurred two years ago.
The company, valued at 63 billion US dollars, went from $250 to $318 in its debut and then soon lost ground again.
Since the beginning of the year, the stock has gained 73% but today COIN loses 9.16% and comes in at 59.30 euros.
The father of crypto exchanges Coinbase, a few weeks ago announced that it would launch its own Ethereum Layer 2 network.
The news had stirred the spirits of investors but after a warm initial reception they remained at the window waiting for more concrete news on the project.
The newly formed Layer 2 network, which is called Base, debuted on 23 February and at the same time the platform’s shares gained 6% in the 24 hours.
The new network has the advantage of processing transactions individually as a Layer-2 of Ethereum.
The network is an upgrade of the existing blockchain and allows for higher transaction speeds that otherwise would not be possible to process.
Base speeds up transactions, data processing and ever-diminishing fees.
Transactions are ten times faster than in the native blockchain and equally cheaper than what Ethereum allows.
Despite Coinbase’s retracement, the news in the long run suggests that the stock’s run will not cease.
Thanks to the upgrade achieved with the creation of the Layer 2 Base network, to date Coinbase is the only crypto company on Wall Street with such a network.
Stocks trudge through tech as Powell awaits
The tech sector was riding high in the wake of Apple’s poor results, but more importantly was beginning to feel the pressure from Jerome Powell’s words.
The Federal Reserve Chairman is expected to speak between tonight and tomorrow giving, according to most analysts, guidance to the market in anticipation of the next FOMC.
The Nasdaq Composite is not sailing in better waters and is down 0.1% as is the Standard & Poor 500.
The same fate that befell tech stocks also infects Growth stocks, which lose points and value in contrast to Treasury stocks on a high note.
Treasuries turn to the plus sign at the end of the session as Powell’s speech on Capitol Hill approaches.
From the stage on Capitol Hill, the chairman of the US Federal Reserve according to analysts will give hints that will anticipate the decisions of the upcoming FOMC.
According to most investors, monetary policy could be guided by Powell’s words as early as today and tomorrow in anticipation of upcoming meetings.
Scotiabank commented as follows:
“The testimony is crucial because if Powell wants to influence market pricing for decisions to be made at the March 21-22 FOMC meeting, this is his last and best chance to do so.”
Next week will see two important dates featuring data that serve as market makers of the US and consequently the global economy.
The non farm payrolls report will be released on Friday while the inflation figure will be released soon and will have as it is easy to infer an important weight on the Fed’s choices.