Coinbase, Robinhood Record Dips in User Activity, Crypto Revenue in Q3: Details

Overall, Coinbase reported a 28 percent decline in its Q3 revenue and Robinhood witnessed a 12 percent decrease in crypto-generated revenues.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 4 November 2022 13:48 IST

Coinbase, Robinhood Record Dips in User Activity, Crypto Revenue in Q3: Details

Photo Credit: Pixabay/ Sergei Tokmakov

For most of September, crypto’s total market cap remained below the trillion-dollar mark

Highlights

Coinbase has blamed macro conditions behind its losses
Robinhood saw more profits from stocks and options trading
Coinbase has been seeing losses continuously this year

The third quarter for this year, that began in July and closed in September, did not really bring good news for top crypto exchanges amid prolonged crypto winter. Coinbase crypto exchange witnessed a substantial dip in its transaction revenues, it revealed in its letter to the shareholders. On the other hand, Robinhood crypto exchange also witnessed a similar result. The popular trading platform recorded a dip in crypto-related revenues on its platform that brought in lesser funds in that expected.

Coinbase transaction revenues slid down by 44 percent in the third quarter of 2022. Between July and September, Coinbase managed to churn $365.9 million (roughly Rs. 3,022 crore).

The figure was almost twice — at $655.2 million (roughly Rs. 5,411 crore) in the second quarter of 2022 between April and June.

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Overall, Coinbase reported a 28 percent decline in its Q3 revenue making a total of $576.4 million (roughly Rs. 630 crore).

Robinhood, on the other hand, noted a 12 percent decrease in the revenue it generated by crypto activities.

Out of Robinhood's net revenue of $361 million (roughly Rs. 2,980 crore), crypto activities only managed to fetch $51 million (roughly Rs. 420 crore) over the past quarter.

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While Coinbase has cited poor macro conditions behind its losses, Robinhood has observed that majority of its transaction revenue was generated via stocks and options.

For most of September, the total market valuation for the crypto sector remained below the trillion-dollar mark.

The market situations really struck some crypto players hard.

Freeway, a crypto staking platform for instance, has stopped the buying and withdrawal services on its platform citing market volatility.

Genesis Trading also resorted to reducing its headcount by 20 percent after being hit by the so-called ‘crypto winter'. ByBit crypto exchange, Coinbase, and CryptoCom also took similar measures to keep their respective businesses afloat.

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Further reading: Cryptocurrency, Coinbase, Robinhood

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More