Coinbase Crypto Exchange Struggles As It Records An 80 Percent Decline In Its Active Customers.

Coinbase is one of the gateways to the crypto market as new investors find the platform easy to navigate. However, a new report reveals that the crypto exchange is presently struggling. coinbase reportedly recorded an 80 percent decline of its active customers in this year alone.

On October 11, Bloomberg reported that crypto exchange giant, Coinbase has had a disappointing year. The report stated that fintech venture firm, Tribe Capital conducted a research which revealed that trading activities on Coinbase in the month of September had dropped by 80 percent compared to the activities registered in December.

The decline is a bit steeper than bitcoin’s price decline since the turn of the year. Bitcoin’s price slump in 2018 is pegged at 60 percent. As such, the persistent bearish run of the crypto market is having an adverse effect on Coinbase’s trading volumes.

Tribe Capital’s figures reiterate the data released by Diar Ltd in August which revealed that Coinbase’s active US customers had fallen by 83 percent in just under 8 months. Tribe capital collated the data by analyzing bank transactions and credit card activities in the US. As such, the data is not comprehensive as it only covered Coinbase’s US activities. In addition, it is important to note that Tribe Capital owns stakes in SFOX. SFOX is a crypto exchange designed to cater to institutional investors. Therefore, Tribe Capital backed SFOX is a Coinbase’s competition.

Coinbase Expands Its Services

Coinbase recently revealed that it will be expanding its services to include custodial services, Also, the exchange is planning on listing more coins, as well as, providing marginal trading services to its customers. Further, a report revealed that Coinbase is conducting a funding campaign that will raise $500 million. If this is successful, Coinbase’s value will rise to $8 billion. However, some believe that Coinbase’s valuation would have easily topped this figure if the crypto market had recovered. Therefore, we can conclude that Coinbase is working extensively to rid itself from depending solely on the fate of its crypto exchange platform.

Crypto Exchanges in The US

The report released by Diar Ltd in August went further to imply that crypto exchanges in America are generally struggling this year. Platforms like Bitstamp and Kraken has reportedly recorded a decline in trading activities. Meanwhile, Binance posted a 20 percent increase in active users in the month of August. This could be attributed to the stringent regulations American crypto exchange platforms are subjected to.

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