2021 has seen a huge increase in popularity for cryptocurrencies and Coinbase has been positioned well to capitalise on that popularity. The Q3 2021 results from the company show that more funds than ever is being invested into crypto.
Coinbase has had some variable changes in its user base:
Despite the quarterly decrease in Monthly Transacting Users, Coinbase did manage to grow the total of assets on the platform:
Coinbase also has reported that the company has 2.8 million users who were earning yield on their crypto assets. 49% of retail Monthly Transacting Users engaged with investing products from Coinbase such as: Staking, Earn and Coinbase Card.
Coinbase has said:
“We are in the early stages of the development of the cryptoeconomy and are focused on investing for long-term growth. As our year-to-date results have clearly demonstrated, our business is volatile. Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the cryptoeconomy and our ability to serve users through our products and services. We encourage our investors to take this point of view.”
Coinbase recently announced they will be launching ‘Coinbase NFT’, it will allow users to mint, collect, discover and showcase their NFT’s. The launch is yet to have a date set and it is yet to be seen exactly how attractive the offering will be compared to other services.
Coinbase predicts total trading volume and Monthly Transacting Users will be higher next quarter (Q4 2021).
The company has also provided two predictions for the full year of 2021, both a high and low prediction has been given:
Since the Earnings Report was released, Coinbase stock has fallen by around 14.93% in after hours trading to around $304. The stock is up around 8.87% since the start of 2021.