Coinbase, the leading US digital asset platform, witnessed a dramatic decline in spot trading volume in the third quarter.
Coinbase's Q3 Crypto Trading Volume Drops
The platform generated nearly $76 billion in spot trading volume, a staggering 52% decline from the same period last year, according to data compiled by CCData.
This figure is estimated to be the lowest since the company's direct listing on the Nasdaq Stock Exchange in April 2021, just months before cryptocurrency prices peaked.
Spot trading volume is a crucial metric for exchanges, and for Coinbase, transaction fees make up a significant portion of its revenue.
Coinbase announced that transaction revenue accounted for 54% of its total earnings in the second quarter. This decline is part of a year-long trend in the crypto industry following a series of controversies, bankruptcies and regulatory interventions.
Despite the decline in trading volume, Coinbase is expected to have gained market share during the quarter, especially as industry leader Binance faces increased regulatory scrutiny.
CCData estimates that Coinbase's share of overall spot trading volume increased to 5.7% from 4.2% a year ago.
This decline in trading volume comes amid regulatory challenges for Coinbase, as the company faces allegations from the U.S. Securities and Exchange Commission that it operates an illegal exchange, among other accusations. Coinbase is challenging these accusations in court.
*This is not investment advice.
