Coinbase’s Slump to All-Time Low Sends Market Cap Below Dogecoin

The crypto exchange has dipped another 17% over the past 30 days, bringing its year-to-date plunge to more than 85%.

AccessTimeIconDec 20, 2022 at 5:25 p.m. UTC
Updated Dec 20, 2022 at 9:47 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Shares of Coinbase (COIN) hit a fresh all-time low on Tuesday as the U.S.-based exchange continues to struggle with low trading volume amid falling crypto prices. Continuing declines for the stock have driven Coinbase’s market cap to less than $8 billion versus roughly $10 billion for meme favorite dogecoin (DOGE), which has suffered its own major tumble in 2022.

Though up marginally on the session at press time, COIN earlier dipped to as low as $34.35, with this recent decline adding to a 21% drop in November. Shares are down just shy of 86% year to date and off 91% from their all-time high hit shortly after going public in April 2021.

“Crypto traders remain skeptical about holding their cryptos on exchanges,” said Edward Moya, senior market analyst at foreign exchange Oanda. “Coinbase has an uphill battle as many traders fixate over moving their cryptos to cold storage, as surging yields keep pressure on this space, and over an uncertain regulatory path,” he added.

The bear market combined with recent scrutiny amid the collapse and potential fraudulent activities of crypto exchange FTX has led to significant declines in trading volumes – through which Coinbase generates much of its revenue. The movement of tokens to cold storage could exacerbate this trend as investors are less likely to transact as frequently if their coins are not on exchanges.

Online stock trading platform Robinhood (HOOD), for example, last month reported an 80% decline in crypto trading volume.

“The fact that dogecoin has a higher market cap than Coinbase shows you that there is still something wrong with the cryptoverse,” Moya said. While Coinbase may be “a decent long-term way to be on crypto,” Moya thinks shares could sink to the $30 level over the next few months.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Helene Braun

Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.