Coinbase, a well-known crypto exchange, has seen a significant surge in trading volume. The daily altcoin liquidity has nearly doubled since September to reach $960M. As per Kaiko, the per-week trading volume of Coinbase has spiked to a 2-year high spot, highlighting a major shift in market activity. The crypto market data provider discussed this increase in its recent report.
Coinbase’s Altcoin Liquidity Touches $960M
Kaiko’s data discloses a remarkable spike in altcoin liquidity of Coinbase since September. The respective figure has reportedly reached the noteworthy $960M mark. This increase in liquidity increase comes at a time when the entire altcoin market is going through heightened activity. In this respect, the prominent ten tokens presently account for 64% of the cumulative market depth. Based on the market statistics, smaller-cap altcoins have obtained a considerable position while mid-cap tokens went through a dip in liquidity share.
Market Share of Exchange Slumps by 3.8% as Ethereum Outflows Reach 1.29M $ETH
The focus of Coinbase has largely been on widening revenue streams. Hence, the revenue from services and subscriptions, including $USDC interest, custodial fees, and blockchain rewards, saw a sharp rise. Nonetheless, the platform still sees trading as the primary revenue driver that consistently accounts for its income’s more than 50% share. The data collected by Kaiko’s tool for monitoring blockchains signifies a huge decline in Ethereum-based beacon chain’s net flows during Q4. Additionally, Coinbase (the 2nd-biggest $ETH staking firm) incurred 3.8% drop in market share. Thus, the net outflow thereof reached 1.29M $ETH, influencing rewards revenue.
$USD-Related Revenue Could Help Compensate Losses
According to Kaiko’s data, the $USDC-related revenue of Coinbase is a noteworthy factor in decreasing losses. It is boosted by Coinbase’s commercial contract with Circle and has already led to massive $USDC volumes on the crypto exchange “Binance.” Nevertheless, irrespective of these developments, the retail trader operations are still decreased. They have plunged from forty percent of volume (as of 2021) to just eighteen percent today.
