Track live crypto price of 10000+ coins!
Thursday’s earnings announcement does not appear to have helped boost Coinbase’s share price, which has been trading near its all-time low in recent weeks. In after hours trading, COIN shares were down slightly at around $169—a far cry from prices of over $400 shortly after the stock debuted last year.
The Coinbase earnings also showed that the share of trading volume from Ethereum, which had eclipsed Bitcoin, had fallen to 16% last quarter. Meanwhile, the volume coming from other assets—such as Dogecoin, Shiba Inu, and so on—grew from 59% to 68%.
Also notable in the Coinbase earnings is that over $200 million of the company’s revenue came from non-trading sources such as staking and lending. While that still amounts to less than 10% of Coinbase’s overall revenue, it suggests the company is finally diversifying away from the trading fees on which it has long relied—and which many believe are under pressure as a result of commission free platforms like Robinhood.
In its letter to shareholders, Coinbase touted the growth of Web3, DeFi, and NFTs, suggesting they will help power further growth for the company and the overall crypto industry. The letter included a graphic showing the rapid growth of self-hosted wallet and the NFT market:
Coinbase also used the earnings announcement to tout a host of new products it has unveiled in the last few months, including a tax center and a payroll center. The company has talked up plans to launch an NFT marketplace with social media features since last fall, but the service has yet to launch.
Coinbase executives will host an earnings call at 5:30pm ET on Thursday where they may address questions posted in an investor forum on topics such as the slumping share price and plans to diversify revenue.