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Coinbase shares are positioned to emerge strong with the current lows as long-term investors take advantage of the current situation to buy cryptocurrencies and hodl.
Crypto company Coinbase Global (NASDAQ: Coin) plunged up to 7.3% on the 28th of December as the overall crypto market sold off. Coinbase gradually lost its shares on the day before the trading session eventually closed. As of 3:05 pm ET, COIN was already down 6.25%. The price of cryptocurrencies often affects Coinbase shares as the company owns the biggest crypto marketplace. Other than crypto assets, Coinbase has more growth opportunities such as non-fungible tokens (NFTs).
Coinbase Shares Drop as Top Crypto Plunges
On Tuesday, top cryptocurrencies fell significantly, with Bitcoin (BTC) and Ethereum (ETH) declining about 10%. At the same time, Solana (SOL) dropped more than 10% for some time. Currently, Bitcoin is down 2.47%to $47,822, while Ethereum has fallen 2.43% to $3,809
Although losses across the crypto market are often considered as bad news for Coinbase, the company may make some money after all. The volatility may cause Coinbase some gains instead. Coinbase makes its money off crypto transactions on the platform. Therefore, the current quarter may be an impactful one for the company with the high volatility in cryptocurrencies over the past months.
In addition, Coinbase shares are positioned to emerge strong with the current lows as long-term investors take advantage of the current situation to buy cryptocurrencies and hodl. Also, many people are now interested in NFTs, and Coinbase has the potential to become a giant among other NFTs marketplaces. The company’s management has been hinting at launching an NFT marketplace. If successful, Coinbase NFT marketplace could be the biggest, with not less than 2.6 million on the waitlist, looking forward to using the product.
COIN Jumps as Bitcoin Increases
Meanwhile, Coinbase shares climbed 4% on the 27th of December at 12:30 pm. ET. At the time, the S&P 500 was up 1%. Notably, the price of Bitcoin increased to $51,000. The crypto company often records increased trading on its platform as well as higher transaction fees when prices are rising. For instance, Coinbase management said that trading volume fell 29% in November due to slumping prices. The administration further said that the start of the company’s fiscal fourth-quarter is on a strong tone due to the increasing volatility and rising crypto prices.
Coinbase is at a premarket trading price of $260.90. The company has grown 16% in the last month and another 2.66% in the last five days. However, COIN has plummeted 11.26% over the past month.