The third quarter for this year, that began in July and closed in September, did not really bring good news for top crypto exchanges amid prolonged crypto winter. Coinbase crypto exchange is witnessing a substantial dip in its transaction revenues, it revealed in its letter to the shareholders. On the other hand, Robinhood crypto exchange will also witness a similar result. The popular trading platform recorded a dip in crypto-related revenues on its platform that brought in lesser funds in that expected.
Coinbase transactions revenues slid down by 44 percent in the third quarter of 2022. Between July and September, Coinbase managed to churn $365.9 million (roughly Rs. 3,022 crore).
The figure was almost twice — at $655.2 million (roughly Rs. 5,411 crore) in the second quarter of 2022 between April and June.
Overall, Coinbase reported a 28 percent decline in its Q3 revenue making a total of $576.4 million (roughly Rs. 630 crore).
Robinhood, on the other hand, noted a 12 percent decrease in the revenue it generated by crypto activities.
Out of Robinhood’s net revenue of $361 million (roughly Rs. 2,980 crore), crypto activities only managed to fetch $51 million (roughly Rs. 420 crore) over the past quarter.
While Coinbase has cited poor macro conditions behind its losses, Robinhood has observed that majority of its transaction revenue was generated via stocks and options.
For most of September, the total market valuation for the crypto sector remained below the trillion-dollar mark.
The market situations really struck some crypto players hard.
Freeway, a crypto staking platform for instance, has stopped the buying and withdrawal services on its platform citing market volatility.
Genesis Trading also resorted to reducing its headcount by 20 percent after being hit by the so-called ‘crypto winter’. ByBit crypto exchange, Coinbase, and CryptoCom also took similar measures to keep their respective businesses afloat.