Coinbase revenue drops in last quarter

According to a report for shareholders, Coinbase generated $ 406 million in revenue in the third quarter of 2021. That’s 74.7% less than in the second quarter. From April to June, the company had indeed generated $ 1.6 billion.

The difference is easily explained: the prices of Bitcoin (BTC) and altcoins exploded in the second trimester, and this was Coinbase’s first quarter as a publicly traded company. The third quarter was also distinguished by a certain gloom in the cryptocurrency markets.

Proof that Coinbase is not really in bad shape, Q3 2021 represents a 500% increase in income compared to the third quarter of 2020. We also note that the trend is global: the Americans Robinhood and Square both published lower results in the third quarter, with regard to revenues related to cryptocurrencies.

The vast majority of revenue generated by Coinbase (80%) comes from transaction fees. We note, however, that staking services have come to the fore: they represent 8% of Coinbase revenue for the third trimester.

👉 Also Read – Coinbase Testing Free Trading Subscription With Priority Support And Theft Insurance

A record fourth quarter?

The recent bull run, which saw the price of Bitcoin (BTC), Ether (ETH) and other altcoins surpass their record highs, should allow Coinbase to generate more substantial income than in the third trimester.

As Sam Bankman-Fried, CEO of the FTX exchange, notes, current volumes indicate that the end of the year will be particularly lucrative for centralized exchange platforms:

The volumes traded on Coinbase indeed seem positioned to claim to exceed those of Binance in the coming weeks.

More broadly, enthusiasm that surrounds the cryptocurrency is palpable at the end of the year, when the BTC exceeded for the first time 68,500 dollars yesterday. Industry heavyweights, including Coinbase, should therefore continue to see users flocking.

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About the Author : Marine Debelloir

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Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.


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