Coinbase stock hits new lows, falling almost 87% over the year

Coinbase stock has fallen to an all-time low of $32.40 per share, dropping 6% over the past five days. America’s largest crypto exchange is ending the year on a sad note amid falling revenues and profits.

It has been a brutal 2022 for Coinbase investors, with the company’s stock falling almost 87% over the year and over 23.19% in the past month.

The exchange, which is currently the third-largest crypto exchange by volume traded, has been hit hard by a mixture of regulation-related fears and FTX contagion diminishing investor confidence in the sector.

Revenues at the firm have also tumbled. Coinbase reported net revenue of $576 million for the third quarter of 2022, a 28% decline from $803 million in the previous quarter.

Moreover, transaction revenue fell 44% quarter-over-quarter, as fewer users were active on the exchange. 

Coinbase has undertaken some harsh measures to shore up its finances, laying off 1,100 employees or roughly 18% of its workforce in June, citing “economic conditions” and saying it “grew too quickly” in a statement.

Although Coinbase’s performance was not so high, tech stocks as a whole are down significantly this year. The Nasdaq Composite, where Coinbase is listed, is down a whopping 34.40% so far in 2022. 

Actually, Coinbase has performed much better than many others in the crypto space, mining firms particularly. Bitcoin miners Riot Blockchain and Marathon Digital Holdings have fallen 84.96% and 90.15% year to date, respectively.