Crypto exchange Coinbase saw a huge fall in its transaction revenues in the third quarter after activity fell amid a broader market downturn, but managed to cut its losses in half compared to the prior quarter.
In its shareholder letter released Nov. 3, the company shared that transaction reven had fallen from $655.2 million in the second quarter to $365.9 million, representing a decline of 44%.
The company cited poor macro conditions with daily average crypto market capitalization falling 30% and trading volumes shifting away from the United States due to the lack of regulatory clarity as reasons for the decline.
It also blamed the numbers on an increasing amount of retail customers holding, 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.”
“I think there’s an opportunity at some point for the crypto prices to potentially decouple from the broader macro environment. And we don’t know if that’s gonna happen, but I think it’s one of the possibilities and regulatory clarity is one of the things that could help kick that…
