Coinbase Misses First Quarter Revenue, $COIN Shares Plummet
Cryptocurrency exchange Coinbase reported a 35% drop in revenue in the first quarter as volatile market conditions and lower crypto asset prices directly impacted its results. Its total revenue in the quarter fell to $1.17 billion from $1.80 billion in the same quarter last year.
Trading volume and monthly users fell
Trading volumes in the first quarter fell to $309 billion from $547 in the last quarter, the company announced on Tuesday. The monthly transacting users in the three months were 9.2 million as against 11.4 million in the last quarter, a decrease of 2.2 million or 19%.
“In the first quarter of 2022, we grew the number of institutional customers compared to the last quarter,” the cryptocurrency exchange said in its earnings report. However, institutional trading volume was $235 billion, a decrease of 37% compared to the last quarter.
Exploring Opportunities Beyond Trading
“We believe these market conditions are not permanent and we remain focused on the long-term,” Coinbase said, adding that its focus will be on the next generation of crypto opportunities beyond trading.
The first quarter saw the launch of Coinbase Pay, which allows any crypto wallet or Dapp to connect to fiat rails, for both Coinbase Wallet chrome extension and Coinbase NFT, in a move to reduce the complexity of transacting in Web 3.0.
Build Future Of Crypto
“We plan to invest significantly, yet prudently, throughout this year to continue building the future of crypto. While we are navigating uncertain and volatile markets, we have a decade of experience to draw from and will continue to invest wisely to drive long-term growth,” it said, indicating its outlook for the year.
The drop in revenues resulted in Coinbase’s shares plummeting to 63.83, a drop of −9.16% in after hours trading. Earlier, the shares closed trading at around $72.
- Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple
- How the Crypto Market Could React to the Next Fed Meeting on October 29?
- $1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
