Top US crypto exchange Coinbase is enduring plummeting trading volume and a decreased number of users in the first quarter of 2022, according to the platform’s CFO.
Coinbase chief financial officer Alesia Haas says in a new company earnings call that Q1 of 2022 is “trending softer” than Q4 of 2021.
Haas notes that the exchange has seen approximately $200 billion quarter-to-date in trading volume, as well as an average of roughly 10 million retail monthly transacting users (MTUs).
That compares to $547 billion in trading volume and 11.4 million MTUs in 2021 Q4, according to Coinbase’s new shareholder letter.
Haas attributes the drop in both metrics to lower crypto prices and lower volatility. The CFO also adds that the exchange expects to have less subscription and services revenue this quarter due to the same reasons.
Despite the decrease in business, Coinbase chief executive Brian Armstrong says he doesn’t believe the market is entering a “crypto winter.”
“In fact, we don’t really think about it like that anymore. I think early on in crypto’s history there was this trend of going through summers and winters. And the thing is, crypto is kinda working now.
And so I don’t expect it to be anything quite that pronounced over time. I think we basically have no idea what’s going to happen in the next quarter, the next couple of quarters, or at any moment in our history with crypto. It’s like trying to predict what the S&P 500 is going to be next quarter or something like that.”
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