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Coinbase Trading Volume Plunges 52% to $76 Billion, Marks Lowest Quarter After Public ListingCoinbase Trading Volume Plunges 52% to $76 Billion, Marks Lowest Quarter After Public Listing
Source: AdobeStock / gguy
Coinbase, the largest cryptocurrency exchange by volume in the United States, recorded a significant decline in spot trading volumes as the crypto bear season drags on.
On Oct 11 Bloomberg reportedthat the low figures posted by the popular exchange in the last quarter could be its lowest in the last two years citing analytics from CCData.
Per the report, spot trading volumes for the exchange stood at $76 billion in Q3 2023, a 52% drop from last year's position.
The new figure places the exchange at its lowest level since its Nasdaq listing in 2021 signaling reduced appetite of investors in crypto trading after over a year of chaotic market policies and crashing prices.
Some observers predicted a 10% drop in revenue as transaction volumes remain key to generating funds for the exchange. In Q2, transaction fees made up 54% of the exchange revenues.
Despite reduced activities, Coinbase shareshave skyrocketed over 100% to $75 after a turbulent 2022 which saw its price drop by 86%. Coinbase recorded a slight increase in market share although spot volumes are at a significant low.
Crypto market and institutional players
The interest of large corporations in traditional financeled to major growth in the market as digital assets were exposed to a new client base, with fresh adoption and use cases sparking fresh liquidity cycles.
These “big money” playersshot the market to an all-time high in 2021 before the unfortunate events in 2022 unfolded.
Coinbase was listed on Nasdaq in 2021 and its stock price soared to $350 with new investors buying into the plans for expansion, technical upgrades, and increasing trading volumes.
However, Q4 of 2022 marked a sharp decline in institutional investors in the market and led to a new bear cycle. The fall of the Terra Network and the collapse of FTXin November 2022 have long been cited as reasons for reduced institutional appetite around digital asset products.
Regulation stifles Coinbase and Binance
Coinbase is not alone in recording reduced transaction volumes as market leader Binance suffered a similar fate after its market share dropped for the seventh straight month.
HTX, DigiFinex, and Bybit have reportedly picked up Binance's dropped market share as the exchange faces regulatory scrutiny in and out of the United States.
Tough regulations from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have resulted in lawsuits against Binance, Coinbase, and other platforms increasing uncertainty among market players.
In June the SEC filed a lawsuit against Binance and Coinbasefor allegedly offering trading services to unregistered securities, faulty registrations, and commingling of user assets amongst others.
Although both institutions have vowed to “vigorously defend” the allegations, the move has drawn the attention of global regulators to the firms reducing user confidence.Trezor Marks 10th Anniversary with New Products LaunchAs part of its celebration, the Czech-based firm has launched three new self-custody products.
Hardware crypto wallet provider Trezor is in the mood for celebration after reaching the milestone of being in business for ten years. As part of its celebration, the Czech-based firm has launched three new self-custody products. The new Trezor products are a new wallet, a proprietary private key backup solution, and a Bitcoin BTC-only wallet.
Trezor Unveils 3 New Products
In its official announcement dated October 12, Trezor disclosedthat the new wallet, dubbed Trezor Safe 3, would support over 7,000 cryptocurrencies. According to the firm, the new product is an indicator of how far it has come with its ambition of providing entry-level hardware wallets. Trezor Safe 3 comes nearly five years after the firm released the Trezor Model T back in February 2018. Although the new wallet retains the firm’s unwavering commitment to open-source development, there’s now an addition in that it applies open-source principles even to its security component. To this end, the company has chosen a third-party secure element vendor such that it may publish potential loopholes as soon as they are discovered.
The hardware company also confirms that the new wallet will sell for $79. They are available in four colors solar gold, stellar silver, galactic rose and cosmic black, the announcement says.
Alongside its new hardware wallet, the firm is also rolling out its own physical private key storage solution. The product, which is called Trezor Keep Metal, is considerably similar to the average physical backup solution in the market. That is, the Trezor Keep Metal is designed in a way that allows users to keep their recovery even in extreme cases of fire or water accidents. But more than its safety, Trezor paid more attention to the usability of its private key backup. According to CEO MatejZak, the detailed attention to usability is part of a larger plan to boost global crypto adoption. Trezor Keep Metal goes for $99 on average.
Lastly, the firm also released a limited edition BTC-only hardware wallet, featuring only 2,013 devices.
Since Trezor was founded in 2013, it has gone on to become one of the largest global providers of hardware wallets. Its first-ever wallet, the Trezor One, was released in 2014 and is still selling to date.
nextBlockchain News, Cryptocurrency News, News
Author Mayowa Adebajo
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
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If the appeal process, which could take years, does not result in a unanimous agreement, the corporation would have to settle any unresolved issues in court.
The United States Internal Revenue Service (IRS) has informed Microsoft Corp(NASDAQ: MSFT) that it owes back taxes of $28.9 billion “plus penalties and interest” for the tax years 2004 through 2013. In an 8-K filingon Wednesday, the corporation revealed that it had received Notices of Proposed Adjustment (NOPAs) from the IRS.
Microsoft counters that up to $10 billion in taxes that it has already “under the Tax Cuts and Jobs Act (TCJA), which could decrease the final tax owed under the audit by up to $10 billion” are not reflected in the proposed adjustments.
Further, the tech giant’s Corporate Vice President for Worldwide Tax and Customs Daniel Goff wrote in a blog poston Wednesday that Microsoft has changed its corporate structure practices since the period covered by the audit. He stated that the issues “raised by the IRS are relevant to the past but not to our current practices.” Microsoft plans to raise its issues with IRS Appeals, a separate IRS division that deals with tax disputes.
“Microsoft disagrees with these proposed adjustments and will pursue an appeal within the IRS, a process expected to take several years. We believe we have always followed the IRS’ rules and paid the taxes we owe in the US and around the world. Microsoft historically has been one of the top US corporate income taxpayers. Since 2004, we have paid over $67 billion in taxes to the US,” Goff wrote.
If the appeal process, which could take years, does not result in a unanimous agreement, the corporation would have to settle any unresolved issues in court. Goff added that Microsoft will continue to cooperate with the IRS and work towards a mutual resolution.
“We will also continue to share updates on significant developments through our public quarterly and annual reports and financial statements, as we have through this entire process. As of September 30, 2023, we believe our allowances for income tax contingencies are adequate,” he stated.
nextBusiness News, News, Technology News
Author Mercy Tukiya Mutanya
Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.
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XRP Ledger Enhancements Go Live: UNL Vote Triumph Marks Arrival of New AmendmentsAdvertisement
Data from XRPScan reveals that several amendment proposals have passed and are now live on the XRP-Ledger (XRPL). Some of the main amendments have been around non-fungible tokens (NFT) on XRPL and have led to many bug fixes. Specifically, amendment ‘NonFungibleTokensV1_1’ enables native support for NFTs and makes prior NFT amendments obsolete.
Emi Yoshikawa, VP of Strategy & Operations at Ripple, highlighted token issuer protection on XRPL she said “On the XRP Ledger, automatic royalties for NFTs are enforced at the chain protocol level,and creators are NOT at the mercy of individual marketplaces.”
NFTs are one area that is steadily growing on XRPL, and according to Yoshikawa, NFT royalties are enforced at the chain level, removing the need for trust in 3rd parties.
The XRP Ledger enjoys strong growth of its NFT platform due to high transaction speed, settlement within 3 seconds, and ensuring swift interaction. Additionally, the Ledger’s affordability, with fees under a cent, makes NFT participation accessible to a wider audience, addressing a crucial concern in the market.
The XRP Ledger operates exclusively at Layer 1, eliminating the need for smart contracts. This inherent security feature mitigates potential vulnerabilities, ensuring the integrity of NFT transactions.
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XRP Cafe highlighted some further advantages the XRPL offers the NFT space, citing build-in decentralized exchanges, which reduces third-party risk, anti-spam measures, and decentralization.
The Amendment Process on XRPL
Due to its open and decentralized nature, the XRP Ledger does not grant any individual or entity the unilateral authority to enact alterations that could affect its functioning. Modifications to the network follow a protocol known as the Amendment process. In essence, this entails submitting the desired modifications to the network for evaluation, after which validator nodes vote to determine whether the changes should be adopted.
Similar to this procedure, a consensus of at least 80% among the validators is necessary to validate the suggested amendments. Sustaining this approval threshold above 80% for two weeks is imperative. Within this timeframe, validators retain the flexibility to revise their votes. Yet, once the 80% consensus is sustained for two weeks, the amendment is officially ratified and prepared for implementation.
According to data from analytics firm Messari, the average daily NFT transaction climbed by 12.7% yearly, from 13,800 to 15,500. NFTokenCreateOffer now accounts for 50% of all NFT transactions; despite that, most NFT transaction types have seen gains each quarter.
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Shiba Inu Marks Bullish Reversal As SHIB Burn Rate Spikes 152%Shiba Inu is seemingly gearing up for a reversal especially as the community has jumped back into reducing the circulating supply of SHIB tokens. This has resulted in a significant jump in the SHIB burn rate over the last day as millions of tokens make their way out of circulation.
SHIB Burn Rate Rises By 152%
On Tuesday, the SHIB burn ratesaw an interesting turn of events that led to an immense rise in the number of tokens being burned in a 24-hour period. As datafrom Shiba Inu burn tracking website Shibburn shows, the SHIB burn rate is up over 90% in the last day.
During this time period, almost 47.38 billion SHIB tokenshave been sent to burn (dead wallets) addresses. This is a sharp contrast against the previous day’s figures which came in at just above 20 billion. It also shows a turn in the lackluster activity that followed the sluggish weekend.
So far, 29 wallets have participated in burning activities over the last day. Interestingly, the majority of these burns have taken place in the last 12 hours alone with over 20 wallets sending tokens to the burn addressduring this time period.
However, the burn rate for the weekly timeframe is still low and is in fact lower than the prior week’s numbers. Shibburn reports that 276.8 billion tokenshave been incinerated in the 7-day period, which is almost 48% lower than what was burned in the prior week.
HOURLY SHIB UPDATE$SHIBPrice: $0.00000687 (1hr -0.40% ▼ | 24hr -0.74% ▼ )
Market Cap: $4,063,643,805 (-0.15% ▼)
Total Supply: 589,339,201,815,845
TOKENS BURNT
Past hour: 499,633 (1 transaction)
Past 24Hrs: 47,387,963 (152.76% ▲)
Past 7 Days: 272,820,619 (-48.46% ▼)
— Shibburn (@shibburn) October 10, 2023
Shiba Inu Price Could See Reversal
At the start of the week, the Shiba Inu price fell below the $0.000007 level which it had been holding for the better part of the month. This decline below this level signaled a takeover by the bears, but this could be short-lived.
According to BarChart, the meme coin has fallen below its 50-day and 100-day moving averages. Even in the very short term, the coin is still bearish as its price is below the 5-day and 20-day moving averages. However, this is not entirely bad.
Times when the price of SHIBhas turned very bearish have often coincided with bottoms as investors take advantage of the low prices to top up their holdings. As such, it creates a prime situation for a reversal to occur.
For SHIB, a reversal from here will easily see it take over the $0.000007 support from here. But mostly, further rallies would have to be kickstarted by the likes of Bitcoin triggering a crypto market-wide bull rally.Coinbase Trading Volume Plunges 52% to $76 Billion, Marks Lowest Quarter After Public Listing Source: AdobeStock / gguy Coinbase, the largest cryptocurrency exchange by volume in the United States, recorded a significant decline in spot trading volumes as the crypto bear season drags on. On Oct 11 Bloomberg reportedthat the low figures posted by the popular exchange in the last quarter could be its lowest in the last two years citing analytics from CCData. Per the report, spot trading volumes for the exchange stood at $76 billion in Q3 2023, a 52% drop from last year's position. The new figure places the exchange at its lowest level since its Nasdaq listing in 2021 signaling reduced appetite of investors in crypto trading after over a year of chaotic market policies and crashing prices. Some observers predicted a 10% drop in revenue as transaction volumes remain key to generating funds for the exchange. In Q2, transaction fees made up 54% of the exchange revenues. Despite reduced activities, Coinbase shareshave skyrocketed over 100% to $75 after a turbulent 2022 which saw its price drop by 86%. Coinbase recorded a slight increase in market share although spot volumes are at a significant low. Crypto market and institutional players The interest of large corporations in traditional financeled to major growth in the market as digital assets were exposed to a new client base, with fresh adoption and use cases sparking fresh liquidity cycles. These “big money” playersshot the market to an all-time high in 2021 before the unfortunate events in 2022 unfolded. Coinbase was listed on Nasdaq in 2021 and its stock price soared to $350 with new investors buying into the plans for expansion, technical upgrades, and increasing trading volumes. However, Q4 of 2022 marked a sharp decline in institutional investors in the market and led to a new bear cycle. The fall of the Terra Network and the collapse of FTXin November 2022 have long been cited as reasons for reduced institutional appetite around digital asset products. Regulation stifles Coinbase and Binance Coinbase is not alone in recording reduced transaction volumes as market leader Binance suffered a similar fate after its market share dropped for the seventh straight month. HTX, DigiFinex, and Bybit have reportedly picked up Binance's dropped market share as the exchange faces regulatory scrutiny in and out of the United States. Tough regulations from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have resulted in lawsuits against Binance, Coinbase, and other platforms increasing uncertainty among market players. In June the SEC filed a lawsuit against Binance and Coinbasefor allegedly offering trading services to unregistered securities, faulty registrations, and commingling of user assets amongst others. Although both institutions have vowed to “vigorously defend” the allegations, the move has drawn the attention of global regulators to the firms reducing user confidence.
