Leading cryptocurrency exchange Coinbase Global Inc has reported a surge in quarterly trading volumes on a sequential basis as volatility in prices drew in retail traders, but warned that growth would slow in the current quarter.
Trading volumes jumped more than 67% to $547 billion in the quarter ended Dec. 31, with retail trading accounting for 32% of volumes and crypto assets contributing 68% to total trading.
“The sequential increase in retail Trading Volume was driven primarily by higher levels of volatility as well as strong consumer interest in a wider variety of crypto assets,” the company said in a statement.
Crypto exchanges have benefited from the digital assets’ march to the mainstream, with businesses across the globe investing heavily to ramp up their crypto infrastructure.
But prices of bitcoin – the world’s largest cryptocurrency – have weakened in recent months as global central banks signal the end of their pandemic-era stimulus.
The original cryptocurrency has also suffered due to rising geopolitical tensions and slumped to a one-month low on Thursday after Russia’s invasion of Ukraine sparked a global selloff.
Coinbase said it believes that retail monthly transacting users and total trading volume will both be lower in the current quarter as compared with the final quarter of 2021.
Coinbase, one of the largest cryptocurrency exchanges in the world, went public through a direct listing in April.
The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Noor Zainab Hussain in Bengaluru. Editing by Aditya Soni.
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