Coinbase's trading volumes dwindle ahead of earnings, retail volume could have 'bottomed out'

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Coinbase will share its first-quarter results on Thursday after a quarter dominated by regulatory oversight.

Coinbase is set to share its first quarter earnings on Thursday amid a turbulent regulatory environment and with trading volumes dwindling.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.Coinbase is slated to deliver its first-quarter earnings after the close on Thursday, and all eyes will be on trading volumes and monthly transacting users after the period was dominated by regulatory concerns.

Spot trading volume on Coinbase came in at $49.4 billion in March, down 46% from the $91.8 billion in a year-ago period, according to The Block's data. "This gives us optimism that retail volume could have bottomed. Additionally, alt-coin trading as a percent of total trading volume on Coinbase has increased, indicating increased retail risk-taking in crypto," Needham's preview note read.Interest income from USDC came in at $146 million in the last quarter, up more than 100% from the previous quarter, even as full-year revenue fell. This income helped improve the exchange's revenue during the quarter.

"So given that COIN’s interest income is derived on a TTM basis, the recent decline in USDC in circulation will have a lagged impact," Coyne said. It may modestly impact 1Q results but will have a more outsized impact as the year progresses, Coyne concluded. Shares in the exchange were trading at $49.13 around 12:30 p.m. ET, down 4.2% since the open, according to TradingView data.

 

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