Coinbase says the massive drop in transaction volume is due to crypto’s overall market cap decreasing year-on-year. On April 4, 2022, the market cap was $2.26 trillion.
In brief: Although Bitcoin’s price is up 74% since the start of 2023, the overall crypto market isn’t looking too healthy compared to last year. According to exchange giant Coinbase’s latest earnings report, transaction volume for consumers in Q2 was down by 70% year-on-year, while the figure for institutions fell 54%.
Coinbase says the massive drop in transaction volume is due to crypto’s overall market cap decreasing year-on-year. On April 4, 2022, the market cap was $2.26 trillion. But falling average crypto prices saw it drop to under $1 trillion at the start of 2023.
A $2.2 trillion peak
The low volatility of crypto prices has also had an effect. Many coins have seen little change in their prices following an increase during the first three months of the year.
