Coinbase dominance in the North American crypto market has significantly dropped as Crypto.com continues to gain more ground.
Amid the general poor performances from major stock indexes around the world, Coinbase Global Inc (NASDAQ: COIN) has registered bearish sentiment despite the recent Bitcoin BTC $106 998 24h volatility: 1.5% Market cap: $2.13 T Vol. 24h: $24.43 B price surge to an all-time high (ATH). According to the latest market data, COIN stock closed Wednesday trading at $211.74, down 3.61 percent from the day’s opening value.
The crypto exchange’s stock market continued with a bearish outlook on Thursday during the New York pre-market session, having dropped 3.86 percent to trade around $203.4. The $52 billion company registered a bearish outlook in the past 24 hours following the announcement of the third quarter earnings result, which largely missed analysts’ expectations.
Closer Look at Coinbase Q3 Performance
During the third quarter, Coinbase Global reported a total revenue of $1.2 billion, whereas analysts surveyed by FactSet anticipated an average revenue of $1.26 billion. The company reported an earnings per share of about 28 cents, whereas Wall Street analysts expected Coinbase to report an EPS of around 45 cents.
The company’s EBITDA during the third quarter was $449 million, whilst analysts estimate was about $469.2 million. Although the company is a major web3 investor, the stock market performance did not reciprocate as expected.
“Really solid results across the board, I think quarter to quarter, you definitely see volatility playing a role in trading revenues and we saw that play out with softer market conditions in Q3 but we’re overall happy with the results,” Anil Gupta, vice president of investor relations, noted.
The cryptocurrency exchange announced that it ended the third quarter with $8.2 billion in cash reserves, and thus plans to initiate a $1 billion share buyback soon.
The company’s Ethereum-based layer two scaling solution dubbed Base has continued to grow exponentially in recent months. By the end of the third quarter, Base Network had a total value locked of more than $2.5 billion. Quarter over quarter, the Base network registered more than a 55 percent spike in transactions and more than two times new smart contracts were deployed.
— Brian Armstrong (@brian_armstrong) October 31, 2024
Market Picture
As the crypto market goes mainstream fueled by clearer regulations, Coinbase has faced intense competition from other cryptocurrency exchanges. As Coinspeaker has recently reported, Crypto.com has significantly dominated the North American crypto market, mostly due to its wide altcoin offerings including the fast-growing meme coin space.
Nonetheless, Coinbase remains the largest cryptocurrency exchange with more than 800K in Bitcoin supply closely followed by Binance with over 600K coins. With the rising adoption of spot BTC ETFs, Coinbase Global will continue to grow its market, especially with the next Congress expected to largely incline to the crypto market.
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