Excluding Bitcoin, there was a huge net outflow of approximately $1.6 billion from Coinbase over the course of the previous week.
Crypto Pioneer Coinbase Faces Challenges After Net Outflow of 1.6 Billion
The recent release of Coinbase‘s Q2 report, the second-largest cryptocurrency exchange in the world by trading volume, appears to have lowered spirits in the crypto community. According to the research, transaction volume for consumers and institutions fell by 70% and 54%, respectively, from the same period in 2022.
Notably, a sizeable portion of this outflow, amounting to $1.175 billion, was accounted for by Coinbase Custody. Experts have made the assumption that Coinbase may be using internal wallet transfers to manage these numbers as a result of insights gained from Nansen data.
What is the Reason for Declining Trading Activity?
The overall decline in the market capitalization of cryptocurrencies and the ensuing decline in average cryptocurrency prices have been blamed for the decline in transaction volume. The likelihood of making significant gains has decreased as a result of the price of Bitcoin’s relative stability since March. The company’s focus on staking has paid off, contributing 13% to the company’s top line, according to Reuters, despite the decline in revenue from buying and selling currencies.
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