Coinbase hit by spot trading slump: Wall Street trims expectations ahead of earnings
Wall Street analysts have lowered their expectations for Coinbase's Q2 earnings due to a slump in spot trading volumes and muted retail participation. While the company is diversifying into services and subscription revenue, it remains heavily dependent on transaction fees from crypto trading.
The consensus view is that Q2 was another difficult quarter for crypto trading. Spot trading volumes fell across the industry as investors remained cautious, bitcoin BTC $ 63,986.95 and ether (ETH) traded lower on average than in the prior quarter and retail participation stayed muted. Crypto markets remained under pressure through most of the second quarter, with bitcoin losing roughly 14% during the period while ether dropped about 25%. While June showed some improvement, most analysts say it wasn't enough to offset weakness in April and May.
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