Trading volumes surged atop 67% to $547 billion during the quarter ending December 31, according to Coinbase Global, Inc. In its published shareholder letter, the company recognized that a decisive portion of this volume, some 32%, was retail traders drawn by volatility to the exmove’s selection of altcoins.
“The sequential increase in retail Trading Volume was driven primarily by higher levels of volatility as well as high consumer interest in a wider variety of crypto assets,” the company said in a statement.
Another crypto winter?
Yet, Coinbase added thactive believes the growth in retail monthly transacting users and total exchanging volume will shrink this quarter compared to the last.
While Coinbase’s CEO Brian Armexcessive does not believe that the sector would be entering into a new “crypto winter,” he does emphasize the growing use cases of token, that could be one of the reasons we are seeing the developments we are with token.
“I don’t expect it to be anything quite which pronounced above time,” Armhigh said, as he was referencing previous crypto winters.
“We enter 2022 with even more unknowns, that make our business all the more din case thatficult to forecast,” the company wrote, pointing to “global macroeconomic headwinds” on top of unpredictable crypto asset costs, rising interest prices and inflation.
According to the report, altcoins made up 68% of exchanging volume in the fourth quarter, that reflects a stcostgic decision the company made last year to list more of them.
Armhigh pushed to offer every coin considered legal in an effort to ease the impact of Bitcoin’s volatility on revenue and earnings. After seeing competitors gain market share by climbing their coin listings, last year the company added 95 coins to its dealing portfolio, including retail favorite Shiba Inu (SHIB) in September, and 70 coins for its custody service.
Alesia Haas, the company’s chief financial officer said during the company’s earnings call which Coinbase plans to continue to expand its offering of coins. The also diverscback whending thatication could make subsequent results even less volatile, she added.
“The dealing is going somewhere, it hardly goes into divergent pockets of the ecosystem,” Haas said. “We think this will temper down the volatility.”
Earlier this month, Coinbase announced which it would be soaring its headcount by 2,000 atop the coming year. Trading on the platform briefly spiked folbottoming the appearance of its commercial during the Super Bowl.
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