Coinbase took another step back in volume throughout the month of February, as total liquidity pumped into the platform fell further.
February was a challenging month for both centralized and decentralized exchanges. According to BeInCrypto Research, the platform generated over $93 billion in trade activity in the second month of the year.
Although this data may appear remarkable owing to Coinbase’s longevity in the crowded crypto finance sector, the exchange’s overall volume fell in February. The overall volume in January 2022 was $124 billion, and it fell by a shocking 25% in February 2022.
The crypto exchange platform may suffer as a result of the drop in volume over the previous two months since it competes with centralized exchanges like as Binance, Mandala Exchange, OKX, Hotcoin Global, CoinFLEX, BitMart, IndoEx, Upbit, Deepcoin, MEXC, and HitBTC, among others.
Coinbase, unlike other exchanges that witnessed year-on-year growth, saw its yearly performance plummet. In February 2022, the firm’s monthly revenue fell by 27% year on year. In February 2021, the total volume reported was roughly $128 billion.
Aside from that, the exchange did not meet the targets it set in the second and final quarters of 2021. In May 2021, the company reached an all-time high monthly volume of about $255 billion. Due to the negative condition of the market in the end of 2021, which extended over into the first quarter of 2022, Coinbase dropped 42% of its May 2021 high volume, resulting in a total volume of around $147 billion on December 31, 2021.
What caused the drop in Coinbase volume?
The total number of currencies supported, the total number of markets supported, and the markets transacted over the periods are undoubtedly important contributors in the drop in total trading volume.
Numerous experts have criticized Coinbase for offering a significantly lesser number of currencies than rival exchanges for a centralized cryptocurrency exchange. Aside from that, Coinbase does not offer as many pairings, which influenced the exchange’s trading patterns during a negative market in February 2022.
Coinbase currently offers less than 150 cryptocurrencies and less than 500 market pairings. Improvements are required for the largest cryptocurrency exchange by volume in the United States in order to witness a turnaround in the exchange’s fortunes.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
