After Italy Approval, Coinbase Loses Key Bitcoin Metric, Here’s Why?

After receiving a downgraded rating from Goldman Sachs last month, Coinbase continues to be in the news for wrong reasons. The existing market conditions have had a huge negative impact on the likes of Coinbase, which also announced job cuts. More recently, the top exchange was reportedly shutting down its affiliate-marketing program in the US.

Coinbase No More The Bitcoin Leader?

In a latest, on-chain data from Glassnode indicates that Coinbase recently lost its pole position as the largest exchange with Bitcoin holdings. According to data shared by Will Clemente, a crypto analyst, there was a drop in Bitcoin holdings with Coinbase. On the other side, there was an upsurge of BTC storage with Binance, another top crypto exchange.

As per the graph shown by Clemente, a flip in Bitcoin holdings occurred around the 600K BTC mark. He tweeted,

“The flippening: Binance has surpassed Coinbase for having the most BTC of any exchange.”

Exchange Fund Data, The Reality

However, it is not clear whether this data includes all the untagged addresses of both the crypto exchanges. Nick de Bontin, an employee of Coinbase, rejected findings of the Glassnode data. He said the data shared is an irrelevant metric considering that exchanges store assets in various other modes. A vast majority of exchange funds are in cold storage and untagged addresses, he added.

In the recent times, several people in the crypto community spoke about the stability of Coinbase. Last week, crypto influencer Ben Armstrong indicated that Coinbase’s history does not project good signs. The recent history suggests that the crypto exchnage could face insolvency, he stated. The exchange, however, was in recent times not protective of its current status. Coinbase reported that its first financial quarter results are directly impacted by the existing market volatility. The company reported a loss of $430 million in Q1.