The US’s largest cryptocurrency platform, Coinbase, experienced a significant decrease in spot trading volume, registering nearly $76 billion, a 52% decline compared to the same period the previous year. This is the lowest Coinbase spot trading volume since before the platform’s notable direct listing on the Nasdaq Stock Market in April 2021, which took place just months before the cryptocurrency price peak.
The majority of Coinbase’s revenue, about 54% in the second quarter of this year, comes from transaction fees, making the Coinbase spot trading volume a crucial metric for the platform. The decrease is in line with a wider trend observed in the digital asset industry over the last year, influenced by numerous scandals, bankruptcies, and regulatory interventions. Despite these challenges, Coinbase managed to expand its market presence in the past quarter, particularly as its competitor Binance faced increased regulatory scrutiny.