which it helped create as part of a consortium, and from offering coin custody services. Coinbase is trying to diversify to lessen its dependence on trading fees, which are susceptible to the wild price swings in the crypto market.
The uncertainly is already having an impact: Coinbase has erased market-share gains it made since the collapse of rival FTX exchange in November. While its share rose from 5.9% in November to 6.5% in January, it has dropped to 4.1% in February so far, according to researcher CryptoCompare. Binance is the world’s biggest crypto platform, with a market share of about 60%.
Coinbase’s shares have surged more than 80% since the beginning of the year, buoyed by the general rally in risk assets such as tech stocks and Bitcoin, the world’s biggest cryptocurrency. That’s after tumbling 85% in 2022. The stock is down about 80% from its closing record high in April 2021. Coinbase fell 1.6% to $64.19 as of 10:26 a.m. in New York.
There are bright spots. Coinbase is expected to report slightly higher revenue in the first quarter ending in March, according to Bloomberg data. Analysts polled by Bloomberg expect revenue of $594.8 million and a loss of $427 million in the period ended in March.