Coinbase revenue drops in last quarter
According to a shareholder report, Coinbase generated $ 406 million in revenue in the third quarter of 2021. This is 74.7% lower than in the second quarter. From April to June, the company had indeed generated $ 1.6 billion.
The difference is easily explained: Bitcoin (BTC) and altcoins prices exploded in the second quarter, and this was Coinbase’s first quarter as a publicly traded company. The third quarter was also distinguished by a certain gloom in the cryptocurrency markets.
Proof that Coinbase is not really in bad shape, the third quarter of 2021 represents an increase in revenues of 500% compared to the third quarter of 2020. We also note that the trend is global: the Americans Robinhood and Square have both published lower third quarter results, as far as cryptocurrency revenues are concerned.
The vast majority of revenue generated by Coinbase (80%) comes from transaction fees. We note, however, that staking services have come to the fore: they represent 8% of Coinbase’s revenue for the third quarter.
👉 Also Read – Coinbase Testing Free Trading Subscription With Priority Support And Theft Insurance
A record fourth quarter?
The recent bull run, which saw the price of Bitcoin (BTC), Ether (ETH) and other altcoins break their records, should allow Coinbase to generate more revenue than in the third quarter.
As Sam Bankman-Fried, CEO of the FTX exchange, notes, current volumes indicate that the end of the year will be particularly lucrative for centralized exchange platforms:
2) First, how have they (and others!) Done recently?
Well, they’re the yellow line. They had a mediocre Q3, but they’re probably in line for a good Q4! pic.twitter.com/yKa4RNRQoX
– SBF (@SBF_FTX) November 9, 2021
The volumes traded on Coinbase indeed seem positioned to claim to exceed those of Binance in the coming weeks.
More broadly, the craze surrounding cryptocurrencies is palpable at the end of the year, as BTC exceeded $ 68,500 for the first time yesterday. Industry heavyweights, including Coinbase, should therefore continue to see users flocking.
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About the author: Marine Debelloir
Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.