Coinbase (COIN) hasn’t displayed its best year and has struggled after its first year as a public company. The global cryptocurrency platform hasn’t stayed at the top of the expectations of its customers.
The coinbase listing, which happened on April 14, 2021, had high expectations ahead of its listing. It opened at $380, where it touched an all-time high of $643.65 on the same day as per the reports by CoinMarketCap.
At the time of writing, it is trading at $138, which is a whopping $78% drop from its all-time high and 6.17% in 24 hours. Despite launching its NFT beta marketplace, the price struggles to sustain.
Coinbase is tailing the crypto market
Coinbase, which went public last year, has gradually recovered from the previous bull market but is significantly down at present. The company’s performance has not been that great during the last few months. This has been one reason for the lowest summer price comparatively.
Even though the company seems to struggle in the stock market, other fundamentals seem sturdier than ever. Coinbase witnessed an income of $840 million in Q4 and has also seen a steep rise in its verified user base, which skyrocketed to 89 million from 58 million.
Coinbase, which launched its NFT beta marketplace, had a flood of waitlist users that surpassed 3.7 million users. The NFT marketplace is not just a place to buy and sell NFTs, but it is also a platform for social engagement.
One thing that stood apart for the users was self-custody. Coinbase provided users with an option to buy any NFT using self custody wallets and custody it with Coinbase. Users who don’t want to go through the hassle of holding private keys opt for this feature.
Despite all this, what can be the main reason for Coinbase’s considerably poor performance? The only logical explanation for this is the poor-performing crypto market, even though tough competition might be a driving force.