Amid Crypto Winter, the crypto exchange Coinbase faced a steep decline in its transaction revenues in Q3 2022 but managed to cut its losses in half compared to the prior quarter. In its shareholder letter released on Nov. 3, the company informed that transaction revenue had fallen from $1.089 million in Q3 2021 to $365.9 million, representing a decline of 62%. The company blamed the poor economic conditions, with daily average crypto market capitalization falling 30%. Tough time for crypto!
Moreover, Coinbase said that trading volumes shifting away from the U.S. due to the lack of regulatory clarity as reasons for the decline.
The company reasoned that an increasing number of retail customers are just holding their cryptos while advanced traders have been using other platforms with more complex products amid the bear market.
Despite the ailing numbers, Coinbase CEO and co-founder Brian Armstrong appeared bullish during the Q3 earnings call, commenting that the regulatory environment could be one of the “biggest unlocks” to growing the industry and even allow for “prices to go back up.”
