The biggest crypto currency trading platform in the United States has been able to beat all the expectations of analysts by earning 24 percent in its fourth quarter despite facing a broad plummet in the crypto currency market. The fourth quarter report of Coinbase has exceeded all the expectations of the market on Thursday after the company disclosed US 2.5 billion total revenue for the quarter which has beaten the predictions of the analysts by 27 percent.
According to the forecast of the FactSet consensus the crypto exchange platform should have generated approximately US 19 billion in revenue for this quarter. Previously the company had doubled the transaction revenue from the third quarter to the fourth quarter and generated 91 percent (US 2.276 billion) in revenue which is entirely from the crypto transactions.
To add investor’s confidence the total transaction revenue of the company in the year 2021 was a whooping US 6.8 billion. Although the report posted US 840 million in net income and displayed a substantial increase of 7.4 million in monthly transactions users (MTU) in quarter three to 11.4 million in quarter four, the share prices of COIN in the market fell 4.7 percent in the post market trading. The company has also generated US 213 million which 9 percent of quarter four revenue from other sources like staking and lending which comes under non-trading products of the company.
The US based crypto trading platform has stated that it has observed a decrease in the market volatility of crypto currencies and asset price in comparison to the all-time-high condition of the fourth quarter. This observation is the result of instability in the condition of the global market and economy. The company report also stated that it can expect a steady decline in the MTUs and their relevant revenue streams in the first quarter of 2022.
Despite hinting for a potentially sluggish market in the first quarter, the company has plans to be aggressive in the internal investment in 2020 while they have also prepared for loathsome market conditions. Teh crypto platform has also pointed out that Web3, NFTs and Defi as the source of the future developments for the company and they have also used the swift increase in the NFT sales during the last year as the symbol of reference.
