Coinbase Declines to All-Time Low, Falls below Dogecoin
On Tuesday, Coinbase (COIN) shares hit a new all-time low as the US-based crypto exchange keeps on battling the decreased trading volume during the lower crypto prices. The continuous dips for the stock have pushed the market cap of the exchange below $8B as compared with the roughly $10B of the prominent meme token Dogecoin (DOGE).
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Coinbase Drops to Its All-Time Low, Pushing Market Cap Lower than Dogecoin
Recently in November, the COIN token dropped to approximately $34.35 and this slump added up to a 21% fall in its overall value. The shares of the crypto exchange have dipped by almost 86% since the start of the year up till now and a ninety-one percent decline has taken place from its hit of an all-time high. This occurred just after it went public in the previous year. Edward Moya, who serves at the exchange named Oanda (a foreign exchange), stated that the crypto traders are still skeptical regarding the holding of their crypto assets on the crypto exchanges.
The analyst added that the Coinbase exchange has to fight a difficult battle because a lot of traders fixate more on shifting their crypto assets to cold storage. As per the analyst, the possible reasons behind this are that the mounting profits continue to pressurize this world along with an uncertain environment of regulations. During the entire current year, the bear market has been hindering the progress of the crypto world.
In addition to this, the latest regulatory scrutiny amid the crash as well as the potential scam-based operations of FTX (the crypto exchange of Sam Bankman-Fried) has been another trouble. The epic collapse of the crypto exchange brought with it enormous slumps in the trading volumes across the industry and Coinbase generates a great amount of its revenue from this. This trend could be minimized by shifting the tokens to cold storage as the investors are reluctant to transfer as often if the coins thereof do not exist on exchanges.
Coinbase’s Shares Might Get Lower than $30 Point, Says the Analyst
Robinhood (HOOD), an online platform for stock trading, reported a drop of eighty percent in the trading volume of the crypto space. Moya mentioned that the still upward market capitalization of Dogecoin in comparison with Coinbase indicates that there is something wrong. In the words of the analyst, the exchange’s shares could descend to the $30 mark during the coming few months.
