Coinbase is a bold bet ((((coin). I started.
The crypto trading platform released an irreplaceable token trading platform to everyone on May 4, two weeks after its launch.
But the first return is unlikely to reassure this part of the company’s diversification. Sure, the traffic light is red or even worried.
Numbers compiled by various data companies show that Coinbase has not yet succeeded in competing with the dominant markets in this segment of crypto space. The performance of the most popular cryptocurrency exchange in the United States is very disappointing. Coinbase hasn’t taken the largest share of the market by using its name.
According to Dune Analytics, since April 20, the launch date of the NFT Marketplace, Coinbase has recorded trading volumes of $ 755,907, with a total of 1,782 transactions by 1,476 users.
The number of users is decreasing every day
These numbers are inferior when compared to, for example, OpenSea. The NFT’s first marketplace displayed a total transaction volume of $ 3,610,913,189 and a total transaction of 2,377,284, with a record of 367,231 users since April 20th.
In addition to OpenSea, Coinbase lags far behind other marketplaces like LooksRare. This last marketplace recorded a trading volume of $ 1,655,729,165, with a total transaction of 39,422 and 23,108 users since April 20th.
The data show that the number of users in Coinbase’s NFT marketplace is declining daily. The first few days seemed to have had a curious effect, but that’s not enough to bring back users.
TheStreet contacted me and Coinbase didn’t respond immediately.
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The very sluggish beginnings of Coinbase NFTs have cast doubt on this service. This is what the company considers to be a growth driver. Coinbase is confident that these digital property titles are a long-term financial opportunity.
The problem is that the context between the announcement of Coinbase and the launch of this NFT marketplace has changed completely, which is not a good way to do it.
The euphoria around the popular word NFT at the end of 2021 and the beginning of 2022 is gone. We are returning a bit to Earth for these digital title certificates.
“The incredible enthusiasm for NFTs led to tremendous growth in the NFT industry in 2021,” said Non Fungible, the world’s largest NFT data resource, in a recent report. “Early 2022 marks a new era of NFTs that have brought about many changes in the market.”
“It is unlikely that the market has collapsed as nearly $ 8 billion was traded in the first quarter of 2022. We will see a more stable shape in the fourth quarter of 2021,” the report said. is showing.
Market capitalization decreased by $ 38.4 billion year-on-year
But “on the contrary, sales volume has fallen by nearly 50% and buyer and seller volumes have slowed very significantly. The big novelty of the quarter is undoubtedly the evolution of market profitability.”
“In 2022, it’s no longer easy to make a profit with NFTs,” the data company concluded.
In addition, Coinbase is currently entering a highly competitive sector. Rivals Binance and FTX already have an NFT marketplace.
Mizuho analyst Dan Dreff said in early April, “We question the strategic rationale for chasing NFTs, as interest in NFTs seems to be diminishing in years when profitability may be questioned. I’m throwing it. “
Coinbase’s market capitalization is now $ 27.1 billion, up from $ 65.47 billion, which was listed on the stock market a year ago. Therefore, it shrank by $ 38.4 billion in a year. Stocks are down 60.7% year-on-year.
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