Coinbase posts positive earnings, but will the upswing last for the first publicly traded crypto exchange?
COIN Rallies on Bullish Crypto Catalysts
Coinbase beat predictions for its second-quarter earnings as transactions on the largest publicly traded crypto exchange.
In their second earnings report since going public this year, the exchange posted $1.9 billion in transaction revenue, $400 million more than expected. The earnings report, published by Coinbase on August 10, was sent to shareholders of the company’s COIN stock.
The report highlighted key areas which helped COIN to power through the market’s volatility. Increases in users and availability of assets are key factors that have helped Coinbase continue to rise in value.
“Q2 was a strong quarter for Coinbase with a record number of users engaging moredeeply in our products and services,” wrote the report. “These adoption trends paired with recent government attention on crypto as a revenue source suggests we have reached an inflection point. Crypto has arrived. “
The first half of 2021 has been an exciting time for Coinbase. The company is still in the very early stages, but the growing popularity of crypto and the mainstream appeal of being publicly traded have helped attract users to the platform.
The platform posted incredible earnings despite the volatility that saw prices rise and fall between Spring and Summer – COIN is currently up ~20% in the month of August.
Numbers Don’t Lie
CoinBase posted consistent gains throughout the quarter. Monthly Transacting Users rose to 8.8 million–– a 44% increase from Q1 2021. The company also reports partnerships with over 9,000 financial institutions. Trading volume is also up 72.5%, hitting $462 billion.
News from the company is bullish and bold. The company is looking to continue scaling to match the industry growth.
The company also saw positives regarding the recent response by the crypto world to lawmaking in the United States. Chief Executive Officer Brian Armstrong was quoted in Yahoo Finance saying he wants the company to become the “Amazon of assets.”
However, the report was not all positive. Coinbase does not expect the numbers of monthly transacting users and trading volume to continue their upswing into the third quarter. These predictions from the company came despite August showing an increase on the metrics from July.
Overall, all signs point to crypto becoming more accepted mainstream. As Coinbase continues to bring earnings and ease accessibility, there will be no stopping the exchange from carving a considerable niche in the market. The recent success was enough for the company to declare that ‘crypto has arrived.’
Source : bsc.news
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