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Coinbase reached a record share of the crypto market in the second quarter, yet still fell short of earnings estimates. The exchange attributed the shortfall to softer spot trading and a muted volatility environment.
It pointed to growth in derivatives, stablecoins and tokenized finance as the segments carrying the business forward. Why the profit fell short The culprit, per Coinbase, was the spot trading desk.
When volatility compresses, retail and institutional traders generate fewer transactions, and a thinner fee stream follows.
Record market share does not translate to record revenue if the overall market is quieter than analysts modeled.
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