With the fall in trading, Coinbase sees the future in staking

bear market obliges, the exchange Coinbase records a trading fall on its platform. Her strategy : develop the staking for booster his income.

After several announcements, including a partnership with BlackRock, the title of Coinbase was starting to rise again. However, this positive trend came to a halt after the publication of the quarterly results.

The exchange shows revenues down by more than 60%. Investors therefore sell the security CORNER, which lost 10% following the announcement of the results. Its CEO, Brian Armstrong, nevertheless wants to be confident.

Compensate for the drop in trading and investment

In a faltering cryptocurrency market, investors, both individuals and institutions, are reducing their trading activity. In the 2nd quarter, the trading volume dipped more than 50% over one year to 217 billion dollars.

Investors tend to go from traders to hodlers,” acknowledges Coinbase CFO Alesia Haas.

Indeed, falling prices encourage customers to keep their assets. To keep this clientele and also to win new clients, the challenge is therefore to develop services adapted to the expectations of investors. the staking is an answer.

As a reminder, staking consists of a token holder placing them in escrow by contributing to a PoS-type network in order to validate the blocks. In return, he receives an income.

Coinbase has significantly developed its staking products, allowing its users to generate returns via Ethereum, Tezos, Cardano and Solana, among others. However, the exchange does not specify the amount of income from staking.

Ethereum staking for institutions in August

These financial solutions are lumped into a broader category, that of non-investment products. And according to Coinbase, these products reach 67% of its monthly users.

The crypto exchange also reports an increase in staking units in the second quarter compared to the first three months of 2022. With the upcoming merger of Ethereum, 2nd market capitalization, Coinbase can expect a further increase in this sector. .

“In early August, we started offering Ethereum staking for institutional clients for the first time,” the exchange points out in a letter to shareholders. His ambition does not stop there, however.

“We will continue in the future to add more assets for staking for our retail and institutional customers,” Coinbase adds. In a report, JPMorgan predicted a rise in the staking marketwhich could reach $40 billion by 2025.

However, the American regulator is currently conducting an investigation into the exchange’s practices, particularly in terms of token listing, but also staking.

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