Coinbase has reported a significant drop in its trading volume for the third quarter of 2023. According to data gathered from CCData, and published by Bloomberg, Coinbase’s spot trading volume was around $76 billion, a 52% decline from the previous quarter and the lowest since before its public debut on Nasdaq in 2021.
The decrease in trading volume reflects a shift in interest in crypto trading, as the prices of major cryptocurrencies have been relatively stable or declining in the past few months.
Coinbase’s Recent Volumen Drop Coincides with an Ongoing Market Trend
Bitcoin, for example, has been hovering around $28,000, down from its peak of over $65,000 in November 2021. Ethereum, the second-largest cryptocurrency by market capitalization, has also seen a drop from its all-time high of nearly $5,000 in November 2021 to around $1,500.
Despite the lower trading volume, Coinbase has gained market share in the last quarter, as one of its main competitors, Binance, faced increased regulatory scrutiny from various countries.
Binance, the world’s largest crypto exchange by volume, has been banned or restricted from operating in several jurisdictions, including the UK, Japan, Canada, and the US. As a result, Binance’s spot market share has fallen for seven consecutive months, while Coinbase and other exchanges have benefited from the migration of users and liquidity.
Coinbase is not the only crypto exchange that has seen a decline in trading volume. Other major exchanges such as Kraken, Bitstamp, and Bitfinex have also experienced lower volumes in Q3 2023.
However, some smaller exchanges such as OKX, HTX (formerly Huobi), Gate.io, CoinW, XT.com, and Bitmart have seen an increase in web traffic and user activity year-to-date.
Coinbase is expected to release its official Q3 2023 earnings report later this month. The company has previously stated that it expects its revenue and profitability to fluctuate significantly due to the volatility of the crypto market. Coinbase’s stock price has also been volatile since its IPO, trading between $208 and $429.