Purpose of Report

• The Coinbase Q2 2022 shows us gives us a breakdown and insights into Coinbase’s operations for the second quarter of 2022.
• The purpose of this report is to understand the current state of the exchange and use it as a benchmark to compare against other crypto exchanges during this same time period. And make recommendations to crypto exchange startups focused on consumers.

Prelude

Before we dive into Coinbase’s numbers and performance, it is important for us to have a general scope of what the crypto market as a whole looked like during this period.

General Crypto Market

Prelude Data Point 1: Crypto Market Cap from Jan 1st till Jun 30th

The crypto market cap had dropped from $2.2 billion at the beginning of the year to $856 million at the end of Q2. That is a decline of 57.2%. And the price of BTC had dropped from $46.7k to $20k at the end of Q2.

Other Exchanges — Binance & FTX

Binance Daily Trading Volume from Jan 1st till Jun 30th Source: Nomics

From the above, we can see that Binance’s volumes were more in an oscillating motion rather than a decline, as we can see with Coinbase. This is because during bear markets about 70% - 80% of Binance’s volume comes from Derivates, while the other 20% - 30% comes from its Spot product. Derivates products puts them in a more shielded position during market downturns.

Data

• Data Point 1: Retail vs Institutional Trading Volume
• Data Point 2: Retail vs Institutional Transaction Net Revenue