A big concern about Coinbase has been about a loss of exchange market share to competitors such as FTX and Binance. The company reported that its second-quarter institutional volume dropped by 27% from the first quarter, and retail volume fell nearly 40%. Coinbase attributed the decline in its institutional volume primarily to lower market-maker volume, noting that these players “gravitate towards products such as derivatives and financing products,” where Coinbase doesn’t match the product offerings of its offshore rivals.
What emerges is a picture that Coinbase’s own activity rebound might rely on belief in a long-term future for crypto among U.S. investors—a future that is especially cloudy amid regulatory uncertainty. Coinbase’s drop in volume is partly a reflection of the fact that its core retail customer bought less and held on for dear life or “HODL’ed” more as prices dropped. Should individual investors start trading more again, it is likely those institutional market...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...