Investors are returning to cryptocurrencies every day, but with less enthusiasm than before.
This is according to a report released on Sunday (February 18) by Bloomberg News, which indicates that the largest US cryptocurrency exchange, Coinbasesaw A 60% annual jump In consumer transaction revenue during the last quarter, an 80% increase from quarter to quarter.
Meanwhile, the report said, Robin Hoodwhich focuses on retail users, saw virtual cryptocurrency volumes jump 242% in December compared to last year.
The report argues that these are the latest signs that crypto enthusiasts, who lost billions when the market tanked in 2022, may be returning to the space in the wake of last month's launch. US exchange-traded funds Direct investment in Bitcoin.
Bitcoin price The report said that the value of digital currencies has more than doubled in the past year, and the idea of them rising higher may make consumers forget how volatile cryptocurrencies are.
“There are signs that the retail crowd is starting to return to the market, but not nearly to the extent of the recent bull market yet,” Kyle Doan, a trader at Arca, told Bloomberg. “Even crypto stocks like COIN and miners show greater volatility than many tokens.”
As PYMNTS wrote last week, Coinbase's fiscal year 2023 numbers — when compared to its fourth-quarter financial results — underlined… The difference one year can make In the field of cryptocurrencies: The company's transaction revenue for 2023 amounted to 1.5 billion US dollars, down 36% year-on-year, and the total trading volume reached 468 billion US dollars, down 44% from the previous year.
Consumer trading volume for the full year of 2023 was US$75 billion, down 55% year-on-year, and institutional trading volume was US$393 billion, down 41% year-on-year. The main driver of these declines was “the lowest levels of crypto asset volatility in several years,” executives told investors.
However, “the exchange’s Q4 numbers tell a more positive story about the cryptocurrency ecosystem,” the report states.
Coinbase's consumer transaction revenue in the fourth quarter reached $493 million, an increase of 79% quarter-over-quarter, while consumer trading volume on the exchange in the fourth quarter reached $29 billion, up 164% from the previous quarter. This is significantly better than the US spot market, which was up 90% over the same period, executives noted.
“Most customers on our platform own multiple crypto assets, not just Bitcoin,” Coinbase CFO Alicia Haas He told investors.
