The market capitalization of U.S. cryptocurrency exchange Coinbase has fallen below $10 billion, having hit a healthy $100 billion when it went public.
On November 22, 2022, Coinbase’s market capitalization was reduced to $9.3 billion, and COIN shares fell 9% overnight to $41.2. This is the all-time low for Coinbase since its listing on the Nasdaq stock exchange.
When Coinbase listed on Nasdaq in April 2021, the company had a market capitalization of $100 billion, when COIN stock trading volumes skyrocketed, and the market capitalization soared to $381 per share, with a market cap of $99.5 billion.
The main reasons for the exchange’s failure include macroeconomic factors, FTX’s failure, market volatility, and high commissions.
For example, Coinbase competitor Binance no longer charges commissions for trading BTC and ETH, while Coinbase still charges a very high commission of 0.6% per trade.
The cryptocurrency industry has also been impacted by the broader stock market, which has also been falling. The Nasdaq Composite fell about 0.94% on Monday, while the S&P 500 lost 0.34%.
Comments from San Francisco Federal Reserve Bank President Mary Daly were also cited as a reason for Monday’s market slump. Daly said in a speech to the Orange County Business Council on Monday that when it comes to interest rates, “adjusting too little can cause inflation to be too high,” but “adjusting too much can lead to an unnecessarily painful recession.”
Daly advocates a “decisive” and “mindful” approach. “We want to go far enough to get the job done,” Daly said of lowering U.S. inflation. “But it’s not to the point where we’ve gone too far.”
Post time: Nov-25-2022