Coinbase Records 50% Loss as the Effect of Crypto Bearish Market Trend Intensifies

Coinbase revenue fell by over 50% from past years, as cryptocurrency buying and selling activities slow down. Consequently, this has caused the company to lose $545 million compared to a profit of $ 406 million during the third quarter of the last two years (2021).

Coinbase raked in as high as 90% of its gains from mean transaction charges. However, during the prevalent bearish crypto market trend, this narrative has changed.

Customers are Leaving Coinbase
Coinbase revealed that the company’s revenue for the third quarter was reduced by 44% from 2nd quarter. Nevertheless, profits made from subscriptions and services grew by 43% to $211 million. Overall profit from the second quarter of 2021 to date fell by 28%.

Coinbase’s earnings before interest, taxes, depreciation, and amortization constitute a loss of $116 million within the above period of time. It was pointed out that the market conditions cause the reduction in trading volume. This is because investors started hodling. The organization as well disclosed that the trading volume has moved away from the United States because of regulatory issues and uncertainties.

In addition to this, users have been moving away from Coinbase. The company disclosed 8.5 million monthly transactions, in the 3rd quarter, which went down from 9 million during the 2nd quarter and 9.2 million during the 1st quarter.

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