Coinbase Coming Close to Holding an Impenetrable Competitive Position: Report

Coinbase 8 18 2018 LearnCrypto Powered By Wyckoff SMI 2024

The latest report reveals that the crypto trading fees is going to double this year despite price slump where Coinbase has 50% of the transaction revenue pool. Furthermore, the lack of traditional finance industry’s involvement will lead Coinbase to end up having an “unassailable competitive position.”

Crypto trading revenues to double

Crypto trading is one of the integral aspects of the crypto market which explains the ongoing movement in a particular cryptocurrency. According to the latest report, crypto trading is going to bring in huge revenues, as much as double this year despite the slump in crypto prices.

Cryptocurrency exchanges have been raking in a huge amount of profits as last year, according to Bloomberg, the buying, and selling of cryptocurrencies generated about $1.8 billion in fees. The report further illustrates that it is about 8 percent of the revenue generated by the traditional exchanges based on the transaction fees. Furthermore, it mentions that in respect of segments, the global cash equities have been the only one to surpass the crypto trading.

The analyst shares that:

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms.”

These services include asset management, market-making, and custodian services.

Coinbase has 50% of transaction revenue pool

A number of giants from the Wall Street have already started making their way into the crypto market. Custodian services are gaining special attention from names like Northern Bank. Big names like JP Morgan and Goldman Sachs have also dipped their toes in. However, the traditional finance industry has yet to make their moves due to the fact that there are regulatory unclarity and uncertainty in the market along with high volatility.

Bitcoin has plunged close to 70 percent since its all-time high in December while a number of altcoins have lost even more than 90 percent of their peak value.

The lack of traditional finance parties in the crypto market will lead to Coinbase, which is backed by exchanges, traditional banks, and venture capital ends up gaining an “unassailable competitive position”. The report further estimates that Coinbase has actually the 50 percent of the transaction revenue pool. Given the fact that Coinbase has been adding about 50,000 users a day last year, the figures definitely match up.

However, the report states that it is unlikely that traditional finance parties would make their way into the crypto market, at least not in the near future. The growing concern over money laundering and regulation will be keeping them away.

As the crypto market is enjoying green, the daily trading volume has been showing $15.6 billion number. When it comes to cryptocurrencies, Bitcoin (BTC) registers the highest 24-hour trading volume at $4.4 billion followed by Tether (USDT) at $3.7 billion and then Ethereum (ETH) with $1.9 billion.

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