Coinbase stock hits multi-month highs as trading volume surges

Shares of Coinbase hit multi-month highs yesterday despite heavy web traffic causing a glitch on the crypto exchange as trading volume surged.

Coinbase shares gained just 1% on Wednesday, but that was enough to close above the $200 mark for the first time since January 2022, according to at TradingView. COIN was trading at $200.80 at market close Wednesday, up 58% over the past month. However, the stock remains down more than 40% from the all-time high of $342.98 set during the crypto bull market peak in November 2021.

Coinbase is currently valued at $37.4 billion, according to The Block’s data dashboard.

Daily trading volume on Coinbase soars

Trading volume on the exchange soared to more than $8.6 billion over the past 24 hours, nearly double the volume generated in the previous 24-hour period and significantly above the 200-to-200 range. $3 billion in daily trading volume over the last year, according to CoinGecko data.

To put this into perspective, yesterday’s trading represents the equivalent of 5% of total Q4 2023 volume and ten% of volume in the third quarter of 2023, according to The Block’s data dashboard.

High traffic causes problems as retail shows signs of comeback

Heavy traffic caused a glitch in Coinbase’s app and showed customer balances at $0 yesterday, amid trading surge as the price of Bitcoin surpassed $60,000 to hit a high of $64,000 on Wednesday.

“We had modeled about a 10x increase in traffic and load tested it. It exceeded that figure. It is costly to maintain overprovisioned services, but we will need to continue working on scaling solutions. “automatically scale and eliminate remaining bottlenecks. Thank you for your support,” said Brian Armstrong, CEO of Coinbase. explain on X.

Many institutional issuers of spot Bitcoin ETFs, such as BlackRock, Ark Invest, and Grayscale Investments, have chosen Coinbase as their crypto custodian. However, Nate Geraci, president of investment advisor The ETF Store, told The Block that spot Bitcoin ETF issuers were not affected.

The degraded performance of the platform has since been resolved, according to Coinbase. status page.

“$60,000 woke people up,” Bitwise CIO Matt Hougan job on X amid speculation that retail users are returning to the crypto market. “For the first time in this bull market, non-bitcoiners started texting me in the market today.”

As underlines According to Steven Zheng, director of research at The Block, Coinbase’s App Store rankings jumped from 300 yesterday to a year-high of 174, appearing to support these claims.

Coinbase also rose to the 15th annual ranking in the finance category on the U.S. App Store, according to The Block’s data dashboard. Cash App is currently ranked number one.

There has also been a recent increase in Google search volume for crypto terms, including Coinbase.

Cathie Wood’s Ark Invest sells over $17 million in Coinbase shares

Meanwhile, Ark Invest on Wednesday unloaded 86,298 Coinbase shares – worth about $17.3 million – from its Innovation exchange-traded fund, ARKK, as the investment manager continues to rebalance its weightings of funds amid the COIN price surge this month.

Yesterday’s offload follows the 46,531 ($9.3 million) worth of Coinbase shares that Ark Invest sold from the same fund on Tuesday and the $7.1 million worth of COIN offloaded on Monday. Ark also sold $16 million worth of Coinbase shares last week.

Ark’s latest sales come after Coinbase beat analyst forecasts for the fourth quarter of 2023, with the crypto exchange reporting revenue of $953.8 million, an increase from $629.1 million in corresponding quarter of 2022.

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