DIAR: Coinbase's trading volumes have hit their lowest point in a year

Quick Take

  • Crypto exchanges have seen their trading volumes plummet in 2018
  • In Q3, Coinbase clocked in a one-year low for trading volumes across its assets 

Cryptocurrency exchanges have seen their trading volumes plummet in 2018, according to research out by Diar. 

On Coinbase, total volumes for bitcoin trading equalled $5.4 billion in Q3 2018, down from $24 billion in Q4 2017, according to Diar. At the same time, ether trading volumes were down from $8.7 billion to $2.8 billion, over the same time period. Across assets, Coinbase's turnover in Q3 2018 hit a one-year low. 

Despite the bear market, last week Coinbase was working on closing a fundraising round to raise up to $500 million, a source close to the situation told The Block. Recode first reported the fundraise, which could value the company at $8 billion. 

Rivals Gemini and Bitstamp have also seen their volumes decline by a similar amount, Diar's research showed. 

As for Coinbase, the firm has been hiring at a fast clip since the beginning of 2018. As Business Insider reported, the firm surpassed 500 staff this year. It has brought on a number of Wall Street heavy-weights as part of its hiring efforts, including Instinet CEO Jonathan Kellner. 

Elsewhere in the market, other crypto firms are struggling to maintain their headcount. Kraken, for instance, slashed one of its unit by 10%, as per Bloomberg News reporting. And Coinfloor, the UK-based crypto exchange, has also fired a number of people, according to the Financial News. 

Bloomberg reported in March that crypto exchanges were making money hand-over-fist, with the top 10 generating as much as $3 million in trading fees per day. 

Read more of The Block's exclusive reporting

Update: A previous version of this post referred to Jonathan Kellner as Instinet's former CEO. He is still serving as the firm's CEO. He'll join Coinbase in 2019.

 

 


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]

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