Not only bitcoin breaks records. The cryptocurrency exchange and sale markets are big beneficiaries of exceptional demand, and if there is a prominent protagonist these days, that is Coinbase.
This exchange – here we explain how it works – has presented exceptional results for the first quarter of 2021: it grows 117% in the number of users and enters in three months almost double what it entered in all of 2020.
Coinbase is already a cryptocurrency giant
The publication of these results has been voluntary and precedes its imminent IPO (in direct listing, it is not an IPO) on April 14. Its market valuation does not stop rising, and some analysts indicate that after this exit to the stock market its value will reach 100,000 million dollars.
The cryptocurrency fever is now different from the one experienced at the end of 2017, and in the face of that phenomenon that has attracted individual investors for months. those who are betting on this market are companies and institutions, which move much larger amounts of money.
Coinbase has benefited from all this phenomenon and in the quarterly results for the first quarter of 2021 has put out his chest with really outstanding data:
$ 1.8 billion in revenue: multiply by 9 what you achieved in the same period of 2020, and multiply by 3 the income of the previous quarter. In all of 2020, revenues were $ 1.1 billion. Of that revenue, between $ 730 million and $ 800 million is net income.
56 million verified users: it grows 117% compared to the same period in 2020 and 30% compared to the previous quarter (43 million).
6.1 million active users: grow from 2.8 million in the previous quarter.
$ 223 billion in assets: they grow almost 150% compared to the 90,000 million that they handled the previous quarter.
These data are complemented by other striking ones, such as the fact that of those assets, 122,000 million dollars belong to institutions, not independent investors.
It is to be hoped that the role of institutions will continue to grow, but of course all this is a domino effect that is spreading to the entire industry right nowThose who did not trust bitcoin are doing so now and are causing its price to skyrocket.
However, the cryptocurrency market is as volatile as ever: after the exceptional rises of a few months ago, bitcoin for example seems to have encountered resistance at the $ 60,000 barrier, with which he has been “playing” for weeks.
News such as the Coinbase IPO are a good reflection of the expectation that this segment has been generating for months. The difference, we insist, is that now the institutional support is clear, and even those who reneged on bitcoin and cryptocurrencies long ago seem to have changed their minds.
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