The United States’ largest cryptocurrency exchange platform, Coinbase, announced its third quarter earnings, which show a decline in the profits. Due to weak market conditions and lawsuits filed against Coinbase, revenue fell to $576.4 million (USD), a decrease of 28% from second quarter earnings. Its net loss was reduced to $544.6 million (USD).
Coinbase stated that due to unfavorable macroeconomic conditions and price fluctuations in crypto assets, it had suffered losses. The expectations of the community do not meet the third quarter earnings. As per the data, Coinbase lost 50% of its revenue growth from the previous year due to fluctuations in the crypto market.
There is a statement by Coinbase that “transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore.”
The entity faced a huge loss of nearly $545 million (USD) meanwhile in 2021 third quarter earnings report stated that it experienced a profit of $406 million (USD). The institution itself is not satisfied with the results in 2022. And the company noticed a loss of $116 million (USD) for its earnings.
Meanwhile, its staking and custody service has reported 43% growth compared to the second quarter. In the previous quarter, Coinbase promised the shareholders that the entity would improve its staking mechanism on the platform. Recently, Coinbase launched a liquid staked token called Coinbase wrapped Ethereum (CBETH). In March, Coinbase raised its support for Cardano stake.
In its third quarter earnings, Coinbase noticed uneven growth in Ethereum, Solana, and Cardano. Recently, Coinbase had started providing multi wallet support for both Ethereum and Solana. Now Ethereum and Solana can access 15 sub-wallets that are linked to one recovery wallet. Each sub-wallet will provide a unique address for the transaction.
The company released a letter on November 3, 2022, stating, “In Q3, we launched institutional staking for Ethereum globally, and while adoption is still in its early days, we are optimistic about the long-term opportunity.”
Coinbase stated that it will improve and develop the conditions that will help the entity’s growth in 2023. It is determined to overcome the economic conditions that pulled the entity backward in the 2022 reports.
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