February 25, 2022
Volumes jumped more than 67% in the quarter with retail trading accounting for 32% of volumes and crypto assets contributing 68% to total trading
US cryptocurrency exchange Coinbase Global on Thursday reported a surge in quarterly trading volumes on a sequential basis as volatility in prices drew in retail traders, but warned that growth would slow in the current quarter.
Trading volumes jumped more than 67% to $547 billion in the quarter ended December 31, with retail trading accounting for 32% of volumes and crypto assets contributing 68% to total trading.
“The sequential increase in retail trading volume was driven primarily by higher levels of volatility as well as strong consumer interest in a wider variety of crypto assets,” the company said in a statement.
Crypto exchanges have benefited from the digital assets’ march to the mainstream, with businesses across the globe investing heavily to ramp up their crypto infrastructure.
But prices of bitcoin – the world’s largest cryptocurrency – have weakened in recent months as global central banks signal the end of their pandemic-era stimulus.
The original cryptocurrency has also suffered due to rising geopolitical tensions and slumped to a one-month low on Thursday after Russia’s invasion of Ukraine sparked a global selloff.
Coinbase said it believes that retail monthly transacting users and total trading volume will both be lower in the current quarter as compared with the final quarter of 2021.
One of the largest cryptocurrency exchanges in the world, Coinbase went public through a direct listing in April.
- Reuters, with additional editing by George Russell
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George Russell
George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.
