September 30, 2023 11:41 am

Coinbase’s Q3 Crypto Trading Volumes To Be Key for Investors, Analysts Say

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp
Telegram

URGENT: JUST 11 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, TO ENSURE WE ARE FULLY FUNDED FOR NEXT MONTH,SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS - Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Coinbase’s Q3 Crypto Trading Volumes To Be Key for Investors, Analysts Say

By Crypto Global News

The largest U.S. cryptocurrency exchange has said investors should expect lower trading volume in the third quarter, given the decline in crypto prices during that period.

Coinbase Global Inc.’s (COIN) trading volumes and revenue will likely be the focus of investor attention as the cryptocurrency exchange gets set to report third quarter financial results Tuesday after the market close.

“Coinbase’s platform trading volumes are a key metric given the majority of company revenue comes from retail and institutional trading fees,” John Todaro, a research analyst at New York-based Needham & Co. who has a buy recommendation on the stock, told clients in a note.

Coinbase posted trading volume of $462 billion in the second quarter, its second ever as a public company, up from $335 billion in the first quarter. Mizuho Securities expects that figure to fall to about $315 billion in the third quarter.

Coinbase warned in last quarter’s earnings report that monthly transacting users and trading volume would be lower in the third quarter compared to the second quarter, citing lower volume levels stemming from a drop in crypto asset prices in the quarter. “August month-to-date, retail [monthly transacting users] and trading volume levels have slightly improved compared to July levels but remain lower than earlier in the year,” Coinbase wrote. The company also slightly lowered its yearly forecast range for monthly active users to 5.5 million to 8 million from the previous range of 5.5 million to 9 million.

What’s next?

The recent jump in the price of bitcoin could aid Coinbase’s commissions, though Wall Street remains divided on Coinbase’s prospects moving forward. Mizuho Securities analyst Dan Dolev wrote recently that Coinbase’s “over-reliance” on trading commissions leaves the firm exposed to long-term take rate compression and industry competition. Still, about two weeks ago, Dolev boosted his overall revenue estimates for Coinbase’s third quarter, citing higher bitcoin prices and increased volatility. Mizuho has a neutral recommendation on the shares.

At least one analyst is urging investors to overlook quarterly trading fluctuations and focus on the larger industry trends.

“Some of the near-term themes have similarities to HOOD [Robinhood] as trading engagement slowed in the quarter from a record first half, deflating some of the first-half enthusiasm,” JMP Securities’ Devin Ryan told clients in an early October research note. “This near-term focus misses the bigger story around the ongoing rapid evolution of the crypto economy, growing use cases for crypto and Coinbase’s value proposition,” Ryan added.

Meanwhile, Coinbase said last week it was testing a no-fee trading subscription service for users, which could be discussed more on this quarter’s conference call as rivals, including Robinhood, offer commission-free crypto trading.

Overall, analysts are calling for Coinbase to report $1.57 billion in revenues for the third quarter, down from $2.23 billion in the second quarter, and adjusted earnings per share of $1.73, down from $6.42 in the second quarter, according to FactSet.

Coinbase shares were up about 5% to $354 on Monday and are up more than 40% from their reference price of $250. But they are still down from their opening trading price of $381.

A new global currency “Our World Coin” is built to bring our outdated and corrupted political systems into the 21st Century, to restore our battered democracies and national sovereignties, to our nations. Visit Our World Coin for more details.

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Support the ANR from as little as $8 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Related News

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

Australian National Review is Australia’s first real free and independent press, one with no editorial control by the elite, but a publication that can generate critical thinkers and critical debate and hold those spreading mistruths and deliberate propaganda in mainstream media to account.

News with a difference that will be educational, compelling and create a platform for political and social change in this country and address the real issues facing this country and the world.

Watch Full Documentary

URGENT: JUST 3 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED TO LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS

Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Get access to TruthMed- how to save your family and friends that have been vaxx with vaccine detox, & how the Unvaxxed can prevent spike protein infection from the jabbed.

Free with ANR Subscription from $8

Download the Full PDF - THE COVID-19 FRAUD & WAR ON HUMANITY