U.S.-based cryptocurrency exchange Coinbase has beaten its earnings forecast for the fourth quarter of 2022, but trading volumes continue to decline.
Net revenue of the exchange was $605 a million Quarterly revenue surpassed $589 million reportedly Estimates by Wall Street analysts
While transaction volume was down 12% compared to the previous quarter, Coinbase cites a 34% increase in subscriptions and services revenue as the reason for the 5% increase in total revenue for the quarter.
Financial results for the fourth quarter and fiscal year 2022 have been released.
The letter to shareholders is available on the Investor Relations website at: https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
Coinbase reiterated its belief that its staking products are not securities, but staking revenue declined compared to the previous quarter as falling cryptocurrency prices outweighed increases in stake balances for all crypto tokens. bottom.
Related: US Regulatory Crackdown Leaks $32 Million in Digital Assets: CoinShares
The exchange is currently facing an investigation by the Securities and Exchange Commission (SEC) for its staking products, similar to how peer crypto exchange Kraken settled a $30 million settlement with regulators.
Coinbase said 2022 will be a “challenging year for the cryptocurrency market,” citing macroeconomic events and events such as the bankruptcies of crypto hedge fund Three Arrows Capital and crypto exchanges Voyager and Celsius. has created strong headwinds for the industry.