Coinbase stock (NASDAQ:COIN) plummeted 11% Wednesday after the American cryptocurrency exchange reported third-quarter earnings that missed Wall Street’s expectations.
Revenue: $1.31 billion versus $1.61 billion estimated by FactSet
EPS: $1.62 a share versus $1.81 estimated by FactSet
The largest crypto exchange in the U.S. is also seeing a low trading volume, driven mainly by lower levels of volatility, the company said.
Listing popular-meme burgeoning meme-based tokens such as Dogecoin and Shiba Inu couldn’t help Coinbase push its trading volume. In the 3rd quarter, the trading volume on Coinbase plummeted to $372 compared to $426 in the 2nd quarter.
Still, the letter of Coinbase to shareholders said “market conditions improved meaningfully later in the quarter which we have continued to see into early” into the fourth quarter. Bitcoin and Ether are leading the crypto market by breaking record highs this week following weaker dollar and bigger interest from banks.
FTX founder and CEO Sam Bankman-Fried on Twitter said the exchange is “probably in line for a good Q4!” The 29-year-old crypto billionaire highlighted Coinbase’s third-quarter volume, which stood at $600 million.
Bitcoin and Ether trading volume declines
With Coinbase adding more cryptocurrencies, Bitcoin’s share of the total trading volume declined to 19% from 24% in the 2nd quarter and 39% in the 1st quarter. Meanwhile, the trading volume of Ether decreased to 22% in the 3rd quarter compared to 26% in the 2nd quarter.