Following the revelation of the company's performance in Q1, 2022, Coinbase's stock dropped massively as it reported $430 million in net losses for the quarter. With the price of the company's stock tumbling over 12% in the last few hours, the market capitalization of one of the biggest exchanges in the world is now beaten by projects like Cardano.
According to CoinMarketCap, Cardano (ADA) total market capitalization is now sitting at approximately $20.8 billion as Coinbase's capitalization is now at $19 billion, while being close to almost $40 billion only a one week ago.
Cardano is not the only cryptocurrency that is beating one of the biggest cryptocurrency trading platforms in the world, as XRP's $24 billion market capitalization also exceeds Coinbase.
According to the company's letter to investors, the first quarter of the new year inherited the trend of low cryptocurrency prices and high volatility directly from 2021. Because of increased risks on the market and worsening market conditions, more users had to leave the space for better times, which impacted the company's performance in Q1.
Arman ShirinyanHigh volatility on the cryptocurrency market and poor performance of most digital assets on the market caused a drop in the trading volume from $547 billion to $309 billion for the period.
Coinbase added that current market conditions are temporary, and the company still believes in the cryptocurrency's market growth and the industry's further development.
But despite the company's idealism, Coinbase's stock does not seem to reflect the same attitude of investors in both the middle and short-term perspective. In the last 90 days, COIN has lost 72% from its value and now trades at $72, with an ATH at $370.
Alex Dovbnya
U.Today Editorial Team
Vladislav Sopov
Dan Burgin