Coinbase, a large crypto exchange that has been looking to expand upon its feature set, has announced its numbers for Q3 which shows a decline in trading volume during the period ending September 2021.
The platform reported a decline of 29% in its trading volumes when compared to the previous quarter but this is generally expected in the crypto industry which is still a maturing market and traders as well as investors are guided by the prices and the volatility much more than in any other markets. So, if there is a large rise or fall in prices, the volatility increases, and the trading volumes also increase accordingly. This varies from quarter to quarter which is why there is an ebb and flow in the volumes for many exchanges every quarter but when viewed as annual numbers, it has been showing a steady rise over the last few years. Even when compared to the same quarter in the previous years, the volumes and other data show a steady increase not only at Coinbase but on other trading platforms as well.
“Today we see 59% of our trading volume coming from other crypto assets,” Chief Financial Officer Alesia Haas said. “We don’t know precisely which asset customers are going to adopt so our strategy of wanting to support all assets will give our customers the broadest and deepest choices to use them,”
To avoid this volatility in the data and the volumes, Coinbase has been looking to expand its feature set and introduce lending and other products so that it would be able to bring in some maturity into the market as a whole and stable revenue for itself. In this aspect, it has been at loggerheads with the SEC which has struck down some of its products like lending and this has been a setback for the company in recent times. The company has advised its investors to be patient and understand that this volatility in the numbers is part of the crypto industry and is likely to stay that way for a few more years as it believes that the industry is still in its early stages like that of the internet in the early years of the 2000s. Only when the market matures, the volatility will die down which will bring in more assured revenue and more investors as well.