There is no denying that 2022 has been catastrophic for the crypto market, with trillions wiped from the total market cap. Coinbase, one of the world’s most successful crypto exchanges has recorded a year-to-date plunge of more than 85%, sending its market cap below that of Dogecoin.
The continued market crisis has taken its toll on numerous crypto firms in 2022 and the market suffered a further blow with the collapse of FTX with crypto exchanges, in particular, reeling from the fallout. According to reports by CoinDesk, cryptocurrency exchange Coinbase has dipped 17% over the past 30 days. This significant decline brings the exchange’s year-to-date plunge to more than 85%. Coinbase (COIN) shares have tumbled as the exchange struggles with record-low trading volumes amid falling crypto prices. The significant decline in stock prices has driven the company’s market cap to less than $8 billion compared to the meme project Dogecoin which currently has a market cap of roughly $10 billion.
Fall of FTX Brought About a Fear of Exchanges
When cryptocurrency exchange FTX collapsed in November, contagion quickly spread throughout the market as traders and investors became fearful of storing their assets on exchanges. Investors have been pulling crypto from exchanges at record rates in favour of self-custody of their assets. The largest outflows that have been recorded have been Bitcoin. In November, 91,557 bitcoins worth a whopping $1.5 billion left exchanges which include Binance, Kraken, and Coinbase.
Coinbase Grows User Base Despite Market Downturn
Despite the harsh conditions experienced in the crypto market, Coinbase has managed to onboard 19 million verified users to its platform this year. Reports suggest that Coinbase added 19 million users globally between December 31, 2021, and September 30, 2022 – a growth percentage of 21.35%. This data represents at least two million users joining the platform per month in 2022.
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Source: https://cryptodaily.co.uk/2022/12/coinbase-market-cap-drops-below-dogecoin