Coinbase’s Stellar Custody Performance
According to a recent report by Messari, Coinbase has seen a remarkable uptick in assets stored under its custody services. By the end of 2020, the exchange had custody of a staggering 11% of the entire crypto market capitalization, which painted a vivid picture of the exchange’s growing influence in the digital asset realm.
Custody Assets Skyrocket
In the fourth quarter of 2020 alone, the total value of assets custodied with Coinbase surged to approximately $90 billion. This spike coincided with a broader boom in the cryptocurrency market, which saw its total valuation more than doubling to hit $780 billion by early 2021. If you ever wondered what $90 billion looks like, it’s equivalent to a mountain of digital gold—if gold came with the ability to moonshot in value overnight, of course!
Bitcoin and Ether: The Heavy Hitters
Despite the diverse array of crypto assets handled by Coinbase, two mainstays have continued to dominate the custody mix. Bitcoin (BTC) and Ether (ETH) accounted for a whopping 83% of all cryptocurrency held with Coinbase. Interestingly, while Bitcoin consistently made up around 70% of these assets throughout 2019 and 2020, Ether saw a notable increase from 9% to 13% during the same timeframe. Talk about a power duo!
Retail vs. Institutional Trading Revenues
It’s intriguing to note that 95% of Coinbase’s trading revenues originate from retail clients, who are known to cough up 30 times more than institutional customers. It’s like supporting your local coffee shop versus allowing a corporate chain to monopolize your latte fix! In fact, the anticipated public listing of Coinbase revealed a pre-IPO valuation that could reach around $107 billion, equating to 7% of the total crypto market cap, which itself sits at $1.54 trillion.
2020 Revenue and Future Outlook
According to Coinbase’s S-1 report submitted to the Securities and Exchange Commission, the exchange boasted direct revenues of $1.1 billion for 2020, primarily driven by trading fees. With Bitcoin and various other crypto assets constituting a significant piece of its corporate treasury since 2012, it seems like Coinbase is gearing up not just for a successful future but also setting the stage for a robust ecosystem in the ever-volatile world of crypto.
