Coinbase Falls Short of Expectations: Trading Volume in the Crypto Market Weakens

Coinbase has released its quarterly figures for the third quarter and significantly missed Wall Street's expectations. The weak performance of cryptocurrencies during the reporting period substantially impacted trading activities. Following the announcement, the stock price of Coinbase Global fell by 4% in after-hours trading. The company reported earnings of $0.28 per share on revenue of $1.2 billion. In contrast, analysts had projected earnings of $0.45 per share and revenue of $1.25 billion. The disappointing figures were attributed to a decline in trading volume, driven by the overall weakness of the crypto market. The total market capitalization for cryptocurrencies recorded a sequential decline of 10% in the third quarter. In the U.S. spot market, which accounts for the majority of Coinbase's revenue, total trading volume decreased by 18% compared to the previous quarter. This led to a decline in transaction revenue by 27% to $573 million in the third quarter, compared to the preceding quarter.