The cryptocurrency market is very volatile. A digital asset can increase in value today and lose it tomorrow, or even within hours. When this happens, it’s not just investors who feel it. Cryptocurrency exchanges are also suffering. Coinbase experienced this recently, as its shares fell 7.3% on Tuesday as the cryptocurrency market fell.
The drop in Coinbase shares
Shares of Coinbase Global (NASDAQ: COIN) fell 7.3% on Tuesday. At the same time, the cryptocurrency market had also experienced a decline. It seems that this is the factor that is the basis for the reduction in the value of the company’s shares. Indeed, a little rather, she only lost 6.2% of her shares before the stock loss finally hit 7.3%.
On Tuesday, the main cryptocurrencies had recorded a sharp drop. For example, bitcoin (BTC) and ethereum (ETH) both fell 10%. As for Solana (SOL), she too had lost 10% of her value before climbing back up slightly.
An NFT marketplace to go up the slope
Obviously, Coinbase shares are following the trend of the cryptocurrency market, which seems logical. Indeed, Coinbase is to date the largest cryptocurrency marketplace. Even if the stock market conforms to the price of cryptocurrencies, chances are it will quickly recover the loss after its stock drops. For good reason, she recently said that she is interested in non-fungible tokens (NFT). Concretely, she announced the creation of a market place which will be entirely dedicated to it.
Coinbase management has already revealed that it plans to make its new NFT marketplace the largest in the world. She expects there to be at least 2.6 million people who use this space regularly, which could increase the volume of trade.
Is the fall in the price of cryptocurrencies problematic?
For Coinbase, one might think that the decrease in the price of cryptocurrencies is problematic. However, this is not necessarily the case. Indeed, we must not forget that the digital asset market is remunerated on transactions. Investors are not happy when the market goes down, but the stock market has the potential to make more money. Finally, the fall in the price of cryptocurrencies could be a good deal for Coinbase.
In 2022, the platform will undoubtedly continue to make good financial returns, since the volatility of the cryptocurrency market will not stop. In addition, a lot of people are interested in NFTs. Its future marketplace will therefore attract many users.
In the last quarter of 2021, Coinbase saw a drop in its stock due to the decline in the value of cryptocurrencies. However, this should not be seen as a bad deal for the stock market. It will recover and no doubt continue to prosper.
Source: Fool
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so that you don’t miss any Cointribune essentials!
TCT writing
Behind the generic signature “TCT editorial staff” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.
