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Coinbase likely under pressure as trading volume slides to $1.2 billion

Coinbase likely under pressure as trading volume slides to $1.2 billion
TL;DR Breakdown
  • Coinbase trading volume has fallen by over 80% since November 2021.
  • The exchange’s average volume is estimated at roughly $1.2 billion in July.
  • Binance has flipped Coinbase in terms of BTC balance.

The pressure from the current cryptocurrency market turmoil weighs heavily on the leading US publicly-traded exchange, Coinbase. The company has lost a significant percentage of its market share, and the trading volume has also tanked, so much so that Coinbase has reportedly fallen out of the top 10 crypto exchanges by USD volume, according to Dan Dolev an equity research analyst at Mizuho.

Coinbase volume down 82% since November 2021

Major cryptocurrency trading platforms have seen their volume decline by a noticeable margin since the peak in November 2021, leading down to the current bearish market cycle. The two most popular companies, Binance and Coinbase, are also affected by the current circle; however, the latter see more drop in trading volume. 

Coinbase’s average volume in July is estimated at about $1.2 billion, according to the analyst. This represents about an 82% decline from an average trading volume of $7 billion recorded during the market peak in November last year. Binance average volume dropped by roughly 66% within the same period, from $32.9 billion to $11 billion in July. 

While Binance retained its position as the world’s largest exchange by volume, Coinbase is said to have dropped out of the top 10 list of exchanges by average USD trading volume in July. Coinbase has fallen from the fourth position in November 2021 to presently the 14th largest, according to Dolev. 

This trend is problematic for COIN. […] All this, coupled with subdued volume trends, is likely to weigh on profitability moving forward, in our view.

Dan Dolev, an equity research analyst at Mizuho.

Coinbase Bitcoin reserve depletes

Onchain analytic firm Glassnode previously reported that Coinbase has been seeing massive outflows of Bitcoin over the past months. The firm said the exchange BTC balance “has declined in a persistent 10k to 30k BTC step function.” An aggregate of 450k BTC has been withdrawn from the exchange over the last two years. 

However, Binance gained a net balance of roughly +300k BTC within the same period, flipping Coinbase as the largest exchange by BTC supply.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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