- Coinbase, one of the largest cryptocurrency exchanges in the world, has seen a significant drop in retail participation.
- Depending on the crypto trend, Coinbase will bounce back.
The cryptocurrency industry has been in turmoil for a while. The prices have dropped more than 50% recently. Moreover, trading volumes at the crypto exchanges are low and still declining. According to CryptoMonday.de, Coinbase’s retail participation has decreased by 68% in Quarter 2 of 2022.
Commenting on the data, CryptoMonday CEO Jonathan Merry said:
Coinbase Sees a Lousy Season
The year 2022 has proven to be a catastrophe for Coinbase. In June, the firm laid off around 18% of the staff. This led to the loss of approximately 1,100 jobs. After that, the price of Bitcoin began a steep decline, reaching roughly $22,000.
Due to the turn of events, Goldman Sachs lowered its rating on Coinbase’s COIN crypto to „sell.“ Thus, the value of the firm’s shares decreased by around 70% since they were listed on the Nasdaq.
Also, Coinbase stopped accepting payments using the Unified Payments Interface (UPI) due to bad laws.
Will Coinbase Bounce Back?
Coinbase needs to adapt to the current situation and make changes accordingly. The firm needs to focus on its institutional investors and expand its products.
Interestingly, when the market is in a downturn, it’s generally good for Coinbase. More people are likely to buy cryptocurrencies when prices are low, hoping to sell them later at a profit. So, even though the current market conditions are bad for crypto exchanges, Coinbase could see an increase in activity soon.
