Faced with weak cryptocurrency prices on the one hand and declining revenue from user transactions on the other, Coinbase CEO Brian Armstrong said the company is not focused on making a profit. I was. We focus on staking.
“Any quarter can be up or down,” he said of the cryptocurrency market on Coinbase’s recent earnings call. “It’s important to distinguish between what you can control and what you can’t control.”
The crypto winter chill has chilled interest in trading digital assets from both retail and institutional investors. Coinbase’s trading volume fell by more than 50% compared to the same period last year, dropping from $462 billion to $217 billion.
During the company’s conference call, Coinbase CFO Alesia Haas admitted that “investors tend to move from traders to hodlers” when faced with headwinds. However, according to her, the number of monthly trading users has increased by 200,000 even in the most recent quarter compared to the same period last year.
among them shareholder letternoted that Coinbase retains users by offering the ability to stake cryptocurrencies, writing: [monthly transacting user] The mix tends towards non-investing activities, especially staking. “
Staking is the process by which investors earn interest on cryptocurrencies by lending them out and verifying transactions on the network’s protocol. This allows validators on the Proof of Stake network to operate, secure, and process transactions.
The exchange believes its staking product is an “early win” for the company, according to the letter. Staking is also one of Coinbase’s priority products, with a long-term goal of becoming the number one staking provider among companies involved in crypto.
Coinbase offers staking rewards for tokens such as Ethereum, Algorand, Cosmos and Tezos.Added Cardano on that list in March Solana in june. In the second fiscal quarter of this year, Coinbase said 67% of its monthly trading users engaged in non-investment products (including staking) offered by the company.
While not specifying how many users were staking cryptocurrencies, the company said: [Coinbase] More native units were staked in Q2 compared to Q1. “
The company continues to focus on staking as part of its business model leading up to the Ethereum merger.Stake.
In a letter to shareholders, he said, “In early August, we launched Ethereum staking for institutional investors for the first time. We will continue to add more assets for
Stay on top of crypto news and get daily updates in your inbox.