Key Points:
Notably, Coinbase Custody accounted for a substantial part of this outflow, reaching $1.175 billion. Insights gleaned from Nansen data have led experts to speculate that Coinbase could be engaged in internal wallet transfers to manage these figures.
The world’s second-largest cryptocurrency exchange in terms of trading volume, Coinbase, recently unveiled its Q2 report, which seems to have dampened spirits within the crypto community.
The report indicated a decline of 70% and 54% in transaction volume for consumers and institutions, respectively, compared to the same period in 2022.
The dwindling transaction activity has been attributed to the overall decrease in the cryptocurrency market’s capitalization and the subsequent drop in average crypto prices. The relative stability of Bitcoin’s price since March has contributed to diminishing opportunities for substantial gains.
CEO Brian Armstrong, spearheading Coinbase’s stance in the crypto industry, is currently engaged in a confrontation with SEC chair Gary Gensler over compliance issues in the crypto market.
With trading activity known for its volatility, Armstrong is steering Coinbase towards diversification.
Amidst the drop in revenue from buying and selling currencies, the company’s focus on staking has paid off, contributing 13% to the company’s top line, according to Reuters.
Interestingly, rival exchange Binance is grappling with similar challenges. In the US, Binance’s market share plummeted from 27% in April to a mere 1% by June’s end, as per Kaiko data.
Additionally, troubles in Europe persist as France investigates its operations, Belgium and the Netherlands restrict its activities, and Germany delays issuing a license.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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