America’s biggest cryptocurrency exchange, Coinbase, has released its report for the third quarter. Earnings were better than what analysts predicted, as its losses were cut by half from the second quarter.
Coinbase Releases Q3 Earnings Report
On Thursday, November 3rd, Coinbase reported user numbers that topped analysts’ estimates. Coinbase’s losses fell more than 50%, from $1.1 billion in Q2 to $545 million in the third quarter.
In what looks like a thawing crypto winter for Coinbase, the exchange reported a Q3 loss of $2.43 per share, lower than the $2.38 some analysts predicted but higher than the previous quarter’s $4.98 per share.
Crypto Transactions Take A Hit
Despite performing better than expected, Coinbase reported a major hit in crypto transactions. According to the report, transaction revenue fell by 44%, from $655.2 million in Q2 to $365.9 million in Q3.
The retail transaction revenue of Coinbase came in at $346.1 million, down from $1.02 billion last year. Coinbase also reported a decline in its monthly transacting users, from 9 million in Q2 to 8.5 million in Q3.
Coinbase explained that “transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as the trading volume moving offshore.”
On the Flipside
- Coinbase recently announced support for Ripple by filing an amicus brief in the ongoing legal battle against the Security and Exchange Commission (SEC).
Why You Should Care
The decrease in demand for crypto is directly linked to the year-long downtrend that has seen many assets lose more than 70% of their value.
Read about Coinbase’s support for Ripple in:
Coinbase Stands with Ripple in SEC Case, Requests to File Amicus Brief
Read about the growth of Coinbase’s services below:
Ankr Adds Coinbase Wallet Support For Liquid Staking