Coinbase, a cryptocurrency exchange that is ranked by coinmarketcap as the second best with a score of 8.9, released its second-quarter performance result, revealing revenue growth of over 1000% from $178 million in the second quarter of 2020 to $2.03 billion in the second quarter of 2021.
Coinbase is an American based cryptocurrency exchange that boasts 68 million verified users, 9,000 institutions, and 160,000 ecosystem partners in over 100 countries.
The company released its second-quarter earnings report for 2021 yesterday revealing a total transaction volume of $462 billion in the second half of the year with institutional investors accounting for 68.62% or $317 billion and retailer investors accounting for the rest.
It also revealed that for the first time, its Ethereum trading volume surpassed that of Bitcoin on the platform with Ethereum accounting for 26% of the trading volume on the platform and Bitcoin accounting for 24%. Other cryptocurrencies accounted for the remaining 50%.
The trading platform posted a net profit of $1.6 billion in Q2, a whopping increase of 4,900% compared to the $32 million recorded in the same period in 2020.
What they are saying
At the earnings call, the CEO of Coinbase, Brian Armstrong spoke about the performance of the company.
He also spoke about how there has been a spike in staking on the platform stating, “we shared in the letter that we now have 1.7 million users doing staking in crypto, which is a way to earn a yield on your assets. And this is up from… basically, that number would probably be zero a year ago.”
On cryptocurrency regulations and the recent U.S infrastructure bill, he said, “We’re seeing a number of our policymakers out there go-to back really for the crypto community and understand the potential of this technology, what it can do, and others who still have quite a bit of skepticism or just frankly a lack of understanding.
And so just like with the birth of the internet, I think there’s a huge opportunity here for governments around the world to benefit from the economic growth and innovation that could happen with crypto but, of course, some of the risks need to be mitigated and that’s just an opportunity for us to go out there and educate.”
Coinbase share price has been struggling in 2021 as it is currently down 17.85% YtD as the store has had some correlation with the cryptocurrency market capitalization. The coin listed on the NASDAQ exchange on the 14th of April and the coin has been bearish since then with the loss further amplified in May, when the cryptocurrency market lost almost half of its value. As of today, on pre-market opening, the COIN is up 3.48% and its share price is expected to appreciate, following the rally in the cryptocurrency market and also the performance of its results.