HomeNewsCoinbase Competitors are Trying to Capitalize on it

Coinbase Competitors are Trying to Capitalize on it


  • Due to rivals recognizing the exchange’s vulnerabilities, Coinbase is losing ground to them.

The leading company losing its position

According to statistics released by Mizuho Securities USA (a U.S. affiliate of the Japanese investment banking and securities business), Coinbase, the leading U.S. exchange, is quickly losing its hegemony. By transaction volume, the San Francisco-based virtual currency exchange platform has fallen to position 14. In terms of comparability, it finished fourth the previous year. Its profitability in the crypto market has decreased from 5.3 percent in the year’s first quarter to just 2.9 percent currently.

Coinbase Hegemony Crashing, Credit: Coinbase
Coinbase Hegemony Crashing, Credit: Coinbase

Since reaching a record high, the value of the company’s shares has plummeted by more than 80%. The business suffered a $430 million loss in the first quarter of the year, which was bad news for its stockholders. After earning enormous income during the bullish trend of 2021, Coinbase stated that it will lay off 18% of its workforce in June.

Why is the market of Coinbase diminishing?

According to data collected by the 5minutecoins team, renowned short-seller Jim Chanos, who foretold Enron’s demise in the early 2000s, claimed he was pessimistic about Coinbase because of its diminishing fee income. With Binance, Coinbase has increased competition on its own ground. Zero-fee trading was recently introduced by the US, the American division of the global cryptocurrency behemoth, in an effort to attract more users and reduce the number of market shares of the leader.

The company’s main source of income was its exorbitant processing fees, but the exchange is fading. Some dealers are charged approximately 4 percent by the exchange. Whereas,  FTX.US only levies a 0.2 percent fee, for instance. Competitors of the failing exchange may justify charging exceptionally low fees by depending on other sources of income.

Ujan Chakraborty
Ujan Chakraborty
Nothing but Blue Skies.


Shiba Eternity is finally launching on October 1st, 2022

The SHIB team stated that the game will be available for downloading in the application stores within a year in October 2021. The development team...

Will October be as good as August for Bitgert?

180% growth in August Over the past few months, the price performance of Bitgert (BRISE) has been astounding. Although the price of BRISE has remained constant...

Is the Big Eyes Coin a SHIB and DOGE Killer?

Positive anticipation  BIG is a new innovative cryptocurrency that has generated a significant amount of anticipation and interest in the cryptocurrency world. Big Eyes Coin may...

Does Floki Inu have a better future than DOGE and SHIB?

Despite the enormous public success of both Dogecoin and Shiba Inu, Floki (FLOKI) is a quickly expanding meme coin with more potential because of its...

Most Popular