Coinbase's new revenue strategies, including Bitcoin ETFs and the Base network, could provide stability in the face of a maturing crypto market.
As the crypto market stabilizes, Coinbase faces challenges related to diminished trading volumes and speculative investor interest. Once a beneficiary of extreme market volatility, Coinbase has seen a significant drop in trading volumes from a peak of $177 billion in late 2021 to $56 billion in Q1 2024.
Coinbase's CFO, Alesia Haas, addressed this at a JPMorgan conference, noting the current market maturity compared to the high volatility of 2021. To counteract the reduced volatility and trading volume, Coinbase is diversifying its revenue streams. This includes involvement in spot Bitcoin and Ethereum ETFs and growth within the Base network.
Despite recent technical issues and a dip in market share since early 2023, Coinbase's stock shows promise. It has recently broken out of a trading range, with a potential rally of up to 20% if the new support level holds.
