JPMorgan Report: Coinbase Is Only CEX to Record Positive Trading Volume YTD
With over $159 billion quarterly crypto traded volume from more than 108 million verified users, Coinbase has attracted more institutional investors during the 2022 bear market.
Coinbase Global Inc (NASDAQ: COIN), a centralized publicly traded cryptocurrency exchange, recorded a slight bump in trading volume in January 2023, according to a report by JPMorgan. The increase in Coinbase crypto traded volume in January has been attributed to FTX’s collapse and its trustworthy build over the years.
JPMorgan and Its Report on Coinbase
Notably, the company has not reported major network failure despite increased hacks, rug pulls and sustained bear market. In any case, the crypto exchange has maintained a high standard of secure crypto storage that is covered by FDIC insurance, up to a maximum of $250,000.
“We think Coinbase has been cultivating a reputation as a reputable, trusted intermediary for some time,” analysts at JPMorgan wrote. “We think that reputation is helping to drive greater market share as activity levels rebound.”
With over $159 billion quarterly crypto traded volume from more than 108 million verified users, Coinbase has attracted more institutional investors during the 2022 bear market. Furthermore, the cryptocurrency exchange was not directly exposed to the FTX and Alameda fiasco.
“Unlike a number of Coinbase’s high-profile peers, Coinbase did not have direct exposure to FTX and was insulated from the direct legal and reputational fallout from its demise,” JPM wrote.
Interestingly, Coinbase has released an Amazon Prime documentary on its journey to a billion-dollar tech company in less than a decade.
📢 COIN: A Founder's Story is now free to stream on Amazon Prime! https://t.co/bOi79DIIYM https://t.co/heoslMAQTO
— Coinbase (@coinbase) January 3, 2023
Coinbase and Market Outlook
Coinbase had previously announced during the 2022 third-quarter earnings results that trading volume will drop substantially as crypto trading moves overseas and DEXes. Moreover, stringent regulatory requirements have pushed most United States-based exchanges to the precipice of bankruptcy.
“For 2023, we’re preparing with a conservative bias and assuming that the current macroeconomic headwinds will persist and possibly intensify,” the company noted in the 22Q3 earnings results.
With a positive market outlook, Coinbase has received significant backing from institutional investors including Cathie Wood’s Ark Invest which has made several purchases in the past two months. As of today, ARKK Holdings of Coinbase stands at approximately 3.01 percent, according to data provided by Cathiesark.com.
Notably, Coinbase’s huge direct exposure to the crypto market makes its stock market as volatile as digital assets. According to market data provided by MarketWatch, COIN shares closed on January 24 trading around $53.56 after dropping 4.3 percent during the day.
Nonetheless, COIN shares have gained approximately 64 percent in the past month, which coincides with Bitcoin’s breakout to $23k in the last few weeks. With a $12.7 billion market capitalization, Coinbase is well poised to grow exponentially with the crypto market in the coming years.
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