Coinbase off to a strong start to 2023 with increased trading volume: Cowen

Coinbase is off to a "strong start" in 2023 with a rebound in trading volume, Cowen analysts said.

Total trading volume in January of $55 billion is a 58% increase over the previous month and average daily volume of $1.8 billion is the highest since August, which had daily volume of $1.9 billion, analysts Stephen Glagola and George Kuhle wrote in a Feb. 2 note. 

Shares in Coinbase jumped 24% yesterday to the highest in nearly three months after a lawsuit alleging it sold unregistered securities was dismissed.

The daily average crypto market cap in January was $949 billion, a 14% increase from December.

Should the cadence of trading remain, revenue for the first quarter should come in around $652 million, compared to Cowen's current estimate of $518 million and the average consensus of $604 million.