Coinbase has experienced a significant decline in its spot trading volume, signaling a notable change in the crypto trading landscape.
Coinbase – which happens to be the largest US crypto platform – registered nearly $76 billion in spot trading volume, according to a new Bloomberg report.
This marks a 52% decrease compared to the same period last year, and it is likely the lowest figure recorded since well before the company’s high-profile direct listing on the Nasdaq Stock Market in April 2021, which occurred just months before the peak in crypto prices.
Trading volume serves as a vital metric for exchanges, and for Coinbase, the largest share of its revenue stems from trading fees.
In the second quarter of the year, Coinbase reported that revenue generated from transactions made up 54% of its total revenue.
This decline is part of a broader trend observed over a year in the digital asset industry, driven by a series of scandals, bankruptcies, and regulatory interventions.
Oppenheimer & Co. analyst Owen Lau noted that “overall, it looks like a challenging quarter” for Coinbase.
The crypto exchange has been embroiled in a high-profile legal showdown with the SEC, with the financial regulator filing a motion to oppose Coinbase’s motion to dismiss the case.
Despite the setbacks, Coinbase managed to expand its market presence in the previous quarter, notably as its rival Binance faced heightened regulatory scrutiny in the country as well.
Earlier this month, the CZ-led crypto exchange’s share of the spot market took a hit for the seventh consecutive month. This share appears to have been captured by its competitors, including Coinbase.