Coinbase, Robinhood Record Dips in User Activity, Crypto Income: Details

The third quarter of this year, which started in July and closed in September, did not really bring good news for the top crypto exchanges during the long crypto winter. Coinbase crypto exchange has seen a sharp drop in its transaction volume, it revealed in its letter to shareholders. On the other hand, the Robinhood crypto exchange also saw the same result. The popular trading platform recorded a dip in crypto-related currency on its platform that brought in less than expected revenue.

Coinbase’s revenue fell 44 percent in the third quarter of 2022. Between July and September, Coinbase managed to make $365.9 million (roughly Rs. 3,022 crore).

This figure was almost doubled – reaching $655.2 million (about Rs. 5,411 crore) in the second half of 2022 between April and June.

Overall, Coinbase reported a 28 percent decline in its Q3 revenue which totaled $576.4 million (roughly Rs. 630 crore).

On the other hand, Robinhood, noted a 12 percent decrease in the income generated by crypto operations.

Apart from Robinhood’s revenue of $361 million (roughly Rs. 2,980 crore), crypto operations managed to earn $51 million (roughly Rs. 420 crore) during the last quarter.

While Coinbase spoke of dire conditions after its losses, Robinhood noted that most of its trading income was made up of stocks and options.

For most of September, the total market capitalization of the crypto sector remained below the trillion-dollar mark.

Market conditions hit some crypto players hard.

Freeway, a crypto staking platform for example, has suspended purchase and withdrawal services on its site citing market volatility.

Genesis Trading has resorted to reducing its value by 20 percent after being hit by the so-called ‘crypto winter’. ByBit crypto exchange, Coinbase, and CryptoCom also took similar measures to keep their respective businesses operating.