More users, higher trading volume, and higher revenue are key to Coinbase after a quarter of huge volatility in the cryptocurrency market.
The trading volume of the crypto exchange rose to $2.2 billion in the second quarter from $186 million a year earlier.
So the company beats market expectations. According to estimates obtained by Bloomberg, the total turnover was previously expected to be $1.88 billion.
The company is also reporting more users than estimated. 8.8 million monthly users traded on the cryptocurrency exchange during the quarter – a 44 percent increase over the previous year.
At the same time, trading volume grew by 38 percent to $462 billion.
It has been estimated at 6.73 monthly users and a trading volume of $377.4 billion, according to Bloomberg.
Coinbase rose 1.7 percent in the aftermarket right after the numbers were released.
less than bitcoin
In today’s quarterly report, Bitcoin appears to have accounted for nearly 24 percent of the cryptocurrency exchange’s trading volume during this period. This is lower than in both the first quarter (39 percent) and in the same period last year (57 percent).
At the same time, trade in Ethereum increased to 26 percent – from 15 percent in 2020.
Other cryptocurrencies account for the rest of the volume.
Coinbase isn’t making any predictions in today’s report, but it expects trading volume to fall in the current quarter.
According to Refinitive estimates, prepared by CNBCAnalysts now expect Coinbase to generate more than $6.29 billion in 2021 as a whole.
Cryptocurrency exchange Coinbase made its debut on Wall Street in April, when the stock closed its first day at $328 – against the reference price of $250.
On the same day, the price of Bitcoin reached an all-time high, with a record high of more than $64,000, according to figures from Coinmarketcap.
Coinbase gets most of its income from cryptocurrency trading, so the stock price is often closely related to the price of bitcoin, according to CNBC.
The stock market debut in April helped make CEO Brian Armstrong, who founded Coinbase in 2012, one of the richest people in the world.
Since then, the price of both Bitcoin and Coinbase’s share has plummeted.
Bitcoin hit the bottom of the year at less than $30,000 in mid-July, while Chinese authorities cracked down on recovery and trading in cryptocurrencies.
After collecting the coin over the summer, one bitcoin is now trading at around $44,750.
Coinbase stock has fallen largely below its closing price since listing day, and closed Tuesday’s regular trading with a 3.85 percent drop to $269.67.
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