- Coinbase’s transaction revenue has decreased by 44% from the second quarter.
- Transaction revenue had dropped from $655.2M in the second quarter to $365.9M.
Coinbase, the US-based cryptocurrency exchange platform’s transaction revenues, dramatically decreased in the third quarter amid the global crypto market collapse. On Thursday, Coinbase (COIN) stated that the transaction revenue had dropped from $655.2 million in the second quarter to $365.9 million, registering a 44% fall.
The trading platform reported $576.4 million in revenue for the third quarter, a 28% decrease from the previous quarter. Coinbase’s shareholder letter also reveals that the macroeconomic and cryptocurrency market headwinds, which the firm expects to persist until 2023, as well as the shift in trading volume offshore, continue to have a major negative impact on its transaction revenue.
A Weak Q3 for Coinbase
Brian Armstrong, the CEO, and co-founder of Coinbase said that the regulatory climate might be one of the major barriers to the industry’s expansion and might even allow for a price recovery.
Armstrong added:
I think there’s an opportunity at some point for the crypto prices to potentially decouple from the broader macro environment. And we don’t know if that’s gonna happen, but I think it’s one of the possibilities and regulatory clarity is one of the things that could help kick that off.
According to Coinbase, the revenue decline was largely offset by a 43% increase in subscription and services revenue, which comes from its staking and custody services and interest income. The company’s revenue for the quarter came in below Bloomberg projections of $649.2 million, which has caused Coinbase shares to decline by more than 8% in the past day of trade.
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