- In spite of the struggles in the crypto market, Coin has increased dramatically this month.
Coinbase is the largest cryptocurrency exchange in the United States. The stock price of Coinbase has increased by a startling 90% in January 2023.
The market value of Coinbase on January 27,2023 was $61.47. The asset was worth $32.65 on December 27, 2022 which means that there has been an increase in price of 88.27% since then.
The recent success of Coinbase is probably a result of its solid and enduring reputation in the cryptocurrency sector. The company has been operating since 2012 and frequently releases financial reports. As a result, despite the failure of FTX and numerous other companies, Coinbase has been able to retain a certain level of trust.
Additionally this month, Coinbase reached a settlement with New York State Department of Financial Services (NYDFS) for $100 million of which the business will spend half in compliance improvements. Although the case against Coinbase is not necessarily a good sign, the constructive nature of the punishment and the assurance offered by the case’s resolution may be considered as a positive move.
Positive coverage from well-known magazines might have also raised the value of the COIN. This month, JMP Securities published a positive study that was quoted by Fortune, Barron and CNBC, which might have also been the reason for investors to purchase the stock.
The value of COIN may have increased as a result of overall expansion of the crypto industry. For instance, during the past 30 days, Bitcoin is up by 39.5% while Ethereum is up by 33%.
Despite this, Coinbase has demonstrated some signs of weakness. The company reduced its workforce by 20% in early January and also shut down its operations in Japan later this month. Moreover, the company also has to pay a nominal fine of $3.6 million in the Netherlands.
Despite recent gains, the asset’s current value is still considerably less than its initial $342 value. Only twice did the stock hit that level: once in April 2021 and another in November 2021.
In summation, the 90% increase in Coinbase stock price in January 2023 is evidence of the growing acceptance and use of cryptocurrencies among the general public. Even if Coinbase has several advantages and disadvantages, things for the company and its investors currently seem promising. Additionally, the cryptocurrency market is inherently unstable so there can be bumps along the way in future.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.