Coinbase Stock Price Fails To Capitalize On Market Recovery And Here’s Why

Last week turned out rather disappointing for Coinbase stock shareholders. This is because the stock price has been struggling to stick its neck above the $200 price level, contrary to expectations. However, the reasons behind this outcome may potentially underscore some good times ahead.

Coinbase stock price has been tracking the crypto market for quite a while. However, it appears to have lost that correlation since the last 5 days of April, during which it moved sideways and struggled to maintain bullish momentum.

The Coinbase stock price did push as high as $214.13 during the last 24 hours. However, reverted to the downside and had a $199.32 at the time of writing.

Meanwhile, the crypto market experienced healthy demand and pushed higher in the first week of May. This underscores the aforementioned divergence which suggests that COIN value did not derive significant demand from the latest upside.

Why Coinbase Share Price Has Been Moving Sideways

COIN price action may have been influenced by multiple factors. One of the most prominent ones was the fact that it missed its Q1 earnings, therefore dampening investor sentiment.

In addition, trading revenue on the Coinbase was down by roughly 19% in the first quarter of 2025. This was largely due to the tariff war disruptions which led to a lot of liquidity being pulled out of coins and onto stablecoins.

According to Coingecko, Coinbase trading volumes in Q1 declined by roughly 10.4% compared to the previous quarter. In addition, the exchange has been losing some ground as far as dominance is concerned.

While the exchange’s underperformance may have contributed to weak investor sentiment, some analysts remained optimistic over the long term. This was mainly thanks to Coinbase’s recent Deribit acquisition.

The acquisition is expected to boost Coinbase’s exposure to the derivatives market. Derivit already controlled a substantial share of the crypto derivatives segment before the acquisition. For context, averaged over $1 billion in daily trading revenue in the last 24 hours at press time.

Consequently, the acquisition should increase Coinbase exposure to the derivatives market and offer a significant revenue boost. Analysts expect the acquisition to favor the share price in the long term.

Will the Acquisition be Enough to Provide Dominance Boost?

Coinbase had a 6.9% marketshare in April, firmly placing it in 6th position in the top 10 list. It is possible that the Derivit acquisition could potentially allow it to compete more effectively with other heavy hitters such as Binance.

Improvements in some other key areas could potentially boost its efforts. For example, the exchange had the lowest weekly visits out of the top 10 crypto exchanges in the spot segment.

The exchange was also present on fewer markets compared to some of its top rivals which may have also held it back. These factors highlight just how much ground the Coinbase exchange has lost over some of its better performing rivals.

Nevertheless, the market has already demonstrated significant recovery since April and appeared to be carrying the same momentum into May. These observations underscore the potential for improved investor confidence in Q2 compared to Q1.

Recovering demand and improving macro factors may push Coinbase performance into the right direction in the coming weeks. However, based on the recent massive acquisition, it was clear that the exchange was seeking redemption from the derivatives segment.