Coinbase Revenue May be Hurt by Lower Trading Volumes, Regulatory Uncertainty, Analysts Say
Wall Street analysts anticipate a slowdown in Coinbase's spot trading volume for Q3, influenced by a lack of crypto catalysts and regulatory uncertainty ahead of the presidential election. Revenue is projected to decline by approximately 13% to $1.26 billion, with an expected earnings per share (EPS) of $0.46. Trading volumes across the crypto industry have decreased, with total trading on exchanges dropping from $3.92 trillion in Q2 to $3.3 trillion in Q3. Crypto.com has surpassed Coinbase in trading volume since July, attributed to its broader token offerings. Analysts note that regulatory concerns and election-related uncertainty have negatively impacted U.S. trading volumes, while international volumes increased by 61%. Lower revenues from trading fees and staking services are expected due to ether's 24% decline in Q3. J.P. Morgan estimates EPS between $0.42 and $0.54 and raised its price target for Coinbase to $196. Coinbase shares are up nearly 30% year-to-date but down 21% from their March peak of $279.71.
