Trading Volume From Q1 At Coinbase Dropped 44% In Comparison To Q4

2022-05-11 02:04:54

The largest exchange by trading volume in the United States, Coinbase, revealed that during Q1 in 2022, the trading volume of the crypto exchange dropped by a staggering 44% after the fourth quarter, leaving the analysts at Coinbase Global shocked after the predictions of a successful first quarter.

In particular, the analyst at Coinbase predicted that the trading volume for the first quarter of 2022 would be $331.2 billion, with the actual number being $309 billion for Q1. Moreover, the same goes for monthly transactions by users, where Coinbase reported 9.2 million for the official Q1 report, as opposed to the expected 9.9 million.

When compared to the numbers from the report for Q4, Coinbase Global notices rather significant losses. Specifically, the crypto exchange reported a $430 million net loss for Q1, which is nowhere near the $840 million profit that the crypto exchange reported for the fourth quarter in 2021.

The same goes for the trading volume, where the company dropped from $547 billion in Q4, down to $309 billion in Q1. This is also noticeable when it comes to transacting users, where the company went from 11.4 million in Q4, down to 9.2 million monthly users in the first quarter.

All in all, Coinbase reported $1.17 billion in revenue for Q1, which is yet another miscalculation from the team of analysts, and consequently, the reason why the trading volume of the number one crypto exchange in the United States dropped by a massive 44%.

In the official statement from Coinbase, the company reveals that not only this won’t influence the long-term plans of the company whatsoever, especially when it comes to 2022, but the crypto exchange also intends to use this experience as a learning curve, and make sure to proceed ” building the future of crypto” as one of the leading enterprises in the industry.

While we are navigating uncertain and volatile markets, we have a decade of experience to draw from and will continue to invest wisely to drive long-term growth. We continue to expect that during a prolonged and stressful scenario for our business, we will aim to manage our 2022 potential Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) losses to approximately $500 million on a full-year basis.Coinbase Official Statement

Related Posts

Germany Presents Its First Ever Nationwide Guide For Crypto Taxes

Germany finally presents the first official nationwide crypto guide for...

Coinbase NFT Announced That Beta Version Is Finally Open For Testing

Coinbase NFT released its beta version to a select group...

Leave a Reply