The greater cryptocurrency and stock market are currently facing pressure from the predictions of inflation and geopolitical conditions. The biggest cryptocurrency exchange in the USA, Coinbase, is also affected by the ongoing bear market trends. A few days ago, Coinbase reported a rapid decrement in trading volume. The company filed for a public listing last year.
Recent data projections from Google Play and Apple Store suggest that the Coinbase downloads have been in a state of free fall for quite some time. The new report published by various media outlets postulates that Coinbase mobile application has decreased by 55%.
Coinbase’s Users also Decreased
Coinbase has recently struggled with the rumours that the company might be struggling to keep up with the increasing inflationary pressure of the market. There were also speculations about Coinbase management thinking about a bankruptcy filing. Since the start of the ongoing year, Coinbase subscribers have shrunk from 2 million to just 900,000.
The Year-on-Year graph by AppFigures suggests that Coinbase downloads have plunged by 79%. Last year in May, the company managed to host around 3.9 million users across America. The main reason for the popularity of Coinbase was its authentic background that invited cryptocurrency investors to make verified Bitcoin and other crypto purchases.
There is a school of thought that claims that the recent cascading trends for Coinbase are a result of the ongoing cryptocurrency volatility. At present, the Fear and Greed Index of the crypto market has entered the red zone, with Bitcoin opting to print red candles for the ninth consecutive month.
Meanwhile, others suggest that the changing trends in the USA around cryptocurrency after the issuance of the new crypto-related EO by the Biden administration are the main culprit.
However, very few investors claim that the decision of Coinbase management to comply with all major regulatory guidelines without legal implication can be the main reason for its doom.
To recover from the $430 million losses of the 2022 first quarter and other issues, Coinbase has adopted a hiring hiatus. Coinbase CEO Brian Armstrong has ensured the users that the situation is not as dire as it is made out to be.