Top US crypto exchange Coinbase witnessed a staggering $53 billion drop across retail and institutional trading volume in the second quarter of 2023.
In a new shareholder letter, the company notes it processed $14 billion in consumer trading volume and $78 billion in institutional volume, for a total of $92 billion.
The figure represents a decrease of 36.5% from the previous quarter as Coinbase recorded $145 billion in total volume in Q1 with retail traders accounting for $21 billion and institutions contributing $124 billion.
It’s also down from the $217 billion in total trading volume Coinbase processed in the second quarter of 2022, a decrease of more than 57%.
Coinbase saw diminished trading volumes this quarter amid recent regulatory woes in the US.
In June, the Securities and Exchange Commission (SEC) sued the exchange, alleging it was selling unregistered securities. The regulator specifically referred to Cardano (ADA), Solana (SOL) and Polygon (MATIC) as “crypto asset securities.”
Coinbase has asked a judge to toss the lawsuit, accusing the SEC of violating due process.
Despite the waning trading volumes, Coinbase says Q2 represented a “strong quarter of execution,” citing employee layoffs as a positive development for the company.
“One year ago in Q2 2022, we started reducing our expense base to operate more efficiently. One year later, we’re proud to say that our quarterly recurring operating expenses have dropped nearly 50% Y/Y (defined as technology & development, general & administrative, and sales & marketing). This includes a 30%+ Y/Y reduction in headcount which, while painful, has paved the way for a more efficient environment where our teams are exhibiting stronger execution, and yielding results. In Q2, we again generated positive Adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) and increased our USD Resources for the first time since late 2021, all while continuing to grow our product suite.”
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