According to Muzuho Securities USA LLC, the American cryptocurrency exchange Coinbase has recently seen a decline in market share. It would have fallen to 14th place recently if it regularly placed among the top 10 digital asset exchanges in the world according to volume.
10th position down to 14th place
Has the “crypto winter” that investors fear truly arrived? According to Muziho’s research, based on the amount of transactions, Coinbase would have dropped from first place to end at the 14th spot in the ranking of digital asset exchanges.
When comparing the top 30 cryptocurrency exchanges operating globally, the US exchange is now given an average market share of 2.9 percent.
Details:
- Compared to the norm, Coinbase would have had a decline of 3.6 percent in Q2 2022.
- The platform experienced a decline of 5.3% in the first quarter.
This indicates that, given the current state of the cryptocurrency market, Coinbase is far from becoming profitable.
On the same path as Celsius, is Coinbase?
Analysts at Mizuho stated:
- “ We are concerned that the competitive nature of the industry is likely to necessitate further increases in sales and marketing spend over time, and may also weigh on Coinbase’s commission percentages. All of this, coupled with subdued volume trends, is likely to weigh on profitability going forward. “
Therefore, even though some of Coinbase’s employees may be let go, the company may be headed for decline (18 percent ).
On the one hand, Mizuho analysts feel that Coinbase’s business model has structural issues. On the other hand, it is currently experiencing a crisis that has sunk (or almost sunk) other ventures like Celsius Network. But it’s also important to keep in mind that Coinbase’s rivals are appearing like weeds, and that people think its commissions are “extremely expensive and unsustainable.”
