Connect with us

Cryptocurrency

Coinbase Activity Plummets 80% in Midst of Crypto Decline

Are cryptocurrency exchanges like Coinbase in danger?

Coinbase Activity Plummets 80% in Midst of Crypto Decline

A recent study shows that Coinbase activity plummets 80% in the midst of the crypto decline. With the fall of cryptocurrency prices within the last year, it seems intuitive that trading activity would decline, as well.

Though, recent data suggests that exchanges may be suffering greatly on this account. In fact, data put forth by Tribe Capital, a FinTech venture firm, shows that Coinbase activity has dropped by 80%. A recent report by Diar LDT shows similar findings.

This decline has taken place between December 2017 and the present. In December, Bitcoin prices reached all-time highs of almost $20,000 and have not come close since.

Is Coinbase In Danger?

Founded in June 2012, Coinbase exchanges Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin in roughly 32 countries worldwide.

Additionally, Coinbase facilitates Bitcoin transactions and storage in 190 countries total. And is known as one of the world’s leading cryptocurrency exchanges and one of the most secure exchanges in existence.

Naturally, if Coinbase has cause for concern, other exchanges likely do, as well. Because they are primarily a cryptocurrency exchange, the 80% decline in activity on their platform sounds like a significant detriment.

The decline is likely a result of fear amongst the cryptocurrency community. When prices plummeted, investors reacted in many different ways. Though, the most common reactions were either to sell and jump ship or to HODL.

Because exchanges make money from trade activity, the withdrawal or holding of investments does not work to their benefit. Though, the decline was not immediate, so it can be assumed that they have taken necessary measures to ensure future success.

The Diversification of Cryptocurrency Exchanges

In this climate, it is wise for exchanges to diversify. Many exchanges are working on tools and applications that do not require a dependency on crypto markets for success.

For example, Coinbase is producing many attractive tools for investors. These tools include custodial services which allow investors to store large amounts of digital currencies and improve trading capabilities.

Additionally, another new service, Coinbase Prime, plans to offer margin financing and over-the-counter trading capabilities.

Trending

TUSD, USDC, AOA, PAX & QKC: Crypto's Biggest Price Moves of the Week TUSD, USDC, AOA, PAX & QKC: Crypto's Biggest Price Moves of the Week

TUSD, USDC, AOA, PAX & QKC: Crypto’s Biggest Price Moves of the Week

Cryptocurrency

Bitcoin Lightning Network (LN) Volume Increases 300% in 10 Days Bitcoin Lightning Network (LN) Volume Increases 300% in 10 Days

Lightning Network (LN) Volume Increases 300% in 10 Days

News

Tether (USDT) 30 Day Volume is 40% Higher than Ethereum (ETH) Tether (USDT) 30 Day Volume is 40% Higher than Ethereum (ETH)

Tether (USDT) Daily Trading Volume is up 31% in 30 Days

Cryptocurrency

BCHSV and BCHABC Listed on Kukoin, Binance and HitBTC Exchanges BCHSV and BCHABC Listed on Kukoin, Binance and HitBTC Exchanges

BCHSV and BCHABC Are Now Trading on These Exchanges

Cryptocurrency

What Is a Cryptocurrency Index Fund? What Is a Cryptocurrency Index Fund?

What Is A Cryptocurrency Index Fund?

Cryptocurrency

Binance Research Reports on Loom Network (LOOM) and GoChain (GO) Binance Research Reports on Loom Network (LOOM) and GoChain (GO)

Binance Research Reports on Loom Network (LOOM) and GoChain (GO)

Cryptocurrency

Bitcoin Cash (BCH) Hard Fork: 12 Things You Should Know Bitcoin Cash (BCH) Hard Fork: 12 Things You Should Know

Bitcoin Cash (BCH) Hard Fork: 12 Things You Should Know

News

Bitfinex Exchange Releases New App for on the Go Crypto Traders Bitfinex Exchange Releases New App for on the Go Crypto Traders

Bitfinex Exchange Releases New App for on the Go Crypto Traders

Cryptocurrency

Connect
Newsletter Signup