Coinbase has published its Q3 2024 report. The total trading volume for the quarter was $18.5 billion. This represents an 18% decrease compared to Q2. It is worth noting that institutional trading contributed to this volume in a big way. It stood at $15.1 billion, equivalent to 81.6% of the total. Retail trading on the other hand recorded $3.4 billion and contributed 18.4% of the total volume.
Bitcoin Dominates Trading Volume as Institutional Interest Grows
Bitcoin trading involving Bitcoin ($BTC) was up in terms of share. It increased to 37% of the total trading volume It went to as high as 37% of the total trading volume. Second on the list was Ethereum ($ETH) with a share of 15%. Tether ($USDT) also rose back to 15%. Trade volume hit 11% thanks to Solana ($SOL).
They conclude that reduced trading volume is a sign of a difficult climate for crypto exchanges. The increased interest from institutional traders is evident from the increased reliance on institutional trading. This trend may persist with the increase in the adoption of cryptocurrency in institutions.
However, the company still holds that significant position in the crypto market even with the reduced trading volume. The company is improving it environment. Its concentration on the institutional investors might help to insulate it from the volatility of the retail investor.
Coinbase Report Shows Shift Toward Institutional Trading
The report presents a change in the trading environment. Institutional traders are becoming the new norm in the market. This may result in stability of trading volumes, which will be recurrent in the trading business. But it also implies that the retail trader has limited power to influence markets. Therefore, as Coinbase advances, it will most likely refine it services for institutional clients.
Altogether, it is possible to note that the performance has declined in Q3, yet, these results can be meaningful. The fact that institutional trading is a strong suit for Coinbase is a good thing. The company is well placed to be able to effectively compete for and respond to changes in the market.
Lastly, investors and analysts will be observing it closely. Later reports will discuss how Coinbase deals with all these challenges. The company’s strategy will become the key to success in the following quarters.
