Coinbase profits plunge by 75% in Q3 as Bitcoin, Ethereum trading volume falters


  • Coinbase has reported a 75% decrease in net income in the third quarter of 2021.
  • This number represents a massive dip in profits compared to Q2, but a 500% increase compared to Q3 2020.
  • Coinbase CFO Alesia Haas stated that trading volume across the crypto spot market has declined significantly in the past quarter.

Leading cryptocurrency exchange Coinbase witnessed its total net revenue of $1.235 billion in Q3, resulting in a 75% drop compared to the previous quarter. The numbers in the third quarter fell 30% short of analyst estimates of $1.614 billion. However, the crypto firm stated that it had been a “strong quarter” for the firm. 

Crypto spot trading volume declined in Q3

The largest cryptocurrency exchange based in the United States by trading volume, Coinbase revealed in a report that its third-quarter earnings reached $406 million. This number represents a substantial drop from its record Q2 when the firm posted a net income of $1.6 billion. However, the Nasdaq-listed firm still saw a 500% increase over Q3 2020.

The cryptocurrency company posted revenue of $1.235 billion in the third quarter, falling substantially below analyst estimates, according to FactSet of $1.614 billion. 

According to Coinbase CFO Alesia Haas, trading volume across the entire cryptocurrency spot market has declined quarter-over-quarter in Q3. 

Comparatively, payments firm Square which allows Bitcoin trading revealed a 23% drop in Bitcoin revenue in the third quarter, highlighting that the leading cryptocurrency’s price remained stable during the period. Robinhood reported its crypto revenue nosedive 78%. 

Leading cryptocurrencies, Bitcoin and Ethereum no longer dominated the majority of trading volume or transaction revenue on Coinbase, as the digital asset firm has expanded to add new coins on the platform. BTC and ETH revenue dropped from 26% in Q2 each to 21% and 22% in Q3, respectively. 

Other altcoins accounted for 57% of the transaction revenue, and 59% of the trading volume. 

Haas added that the digital asset exchange will continue to support all legal assets, as the firm would not know precisely which coins customers are going to adopt in the future. 

However, Coinbase stated that this has been a “strong quarter” for the firm, as the company is gearing toward deeper investor engagement on the platform. The crypto exchange has been developing new products including its upcoming NFT marketplace.

The report encouraged Coinbase investors to steer the focus on the long term as opposed to quarter-to-quarter.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland price to double as MANA enters buy zone

Decentraland price correction nears an end as it approaches the buy zone, extending from $3.11 to $3.64. A dip into this area will likely reverse the downtrend and trigger a 107% upswing to $7.50. A breakdown of the range low at $2.46 will invalidate the bullish thesis.

More Decentraland News

Three reasons why Ethereum price is on the brink of breakout to new all-time high

ETH is inching closer to the “merge,” or the transition from “proof-of-work” to “proof-of-stake,” and developers have invited the community to contribute. ETH is closest to its previous all-time high, awaiting a trigger to break into a price tally. 

More Ethereum News

Dogecoin price forms triple bottom with DOGE targeting $0.30

A brief technical and on-chain analysis on Dogecoin price. Here, FXStreet's analysts evaluate how DOGE might be ready to bounce.

More Dogecoin News

Terra primed for profit-taking following LUNA's all-time high

Terra price looks ready for a minor correction after setting up a new all-time high. The recent rally has pushed LUNA up without a major pullback, making the anticipated retracement highly likely.

More Terra News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP