• bitcoin

    Bitcoin (BTC)

    $ 5,602.00 4.31%
  • ethereum

    Ethereum (ETH)

    $ 173.44 1.21%
  • ripple

    XRP (XRP)

    $ 0.323248 0.14%
  • stellar

    Stellar (XLM)

    $ 0.111793 2.15%
  • eos

    EOS (EOS)

    $ 5.27 0.23%

Analysis

Coinbase’s volumes indicate a tough road ahead in going public

Quick Take

  • Coinbase’s volumes are down significantly in the bear market and unless market conditions change, revenues will reflect it
  • Even though the company has diversified its revenue stream in fee-based/AUM based products, it will likely not be significant enough to counter the decrease in commissions
  • Projected trading commission revenue by The Block is only $545 million in 2019, representing a 55.6% decrease year-over-year

Coinbase is having a tough year with monthly volume being only 6% of what it was a year ago. The revenue, which is still almost exclusively driven by trading commissions, could drop by up-to 56% year-over-year if the market conditions remain the same.

Monthly traded volume on cryptocurrency exchanges is down more than 80% from an all-time high in December 2017, according to The Block’s analysis.