- Shares of Coinbase (COIN) hit a new all-time low on Tuesday, and the firm’s market capitalization hit less than $8 billion.
- The shares are down 86% year to date and 91% from their all-time high shortly after going public in April 2021.
- Doge has a market capitalization of approximately $10 billion.
The bankruptcy of FTX generated a major crisis within the crypto ecosystem. The numbers are the lowest in the last year and not even the strongest cryptocurrencies, such as Bitcoin and Ethereum, have been spared from the debacle. However, the big losers at the moment are centralized exchanges.
Doubts about Binance, the most important exchange in the world, were added to the bankruptcy of FTX. Analysts and researchers do not trust the company’s reports and fear that they do not have the funds they claim to have. For his part, Coinbase, the most important “digital bank” in the United States, is also experiencing moments of crisis.
The company’s shares (COIN) signed a new minimum on Tuesday, December 20, on the US stock market and the low volume of operations that the company is having is worrying, they say from CoinDesk. These latest moves led Coinbase to have a market capitalization of $8 billion.
The comparisons face it with Dogecoin, the most popular memecoin in the market, which has a higher value, having a capitalization close to $10,000 million dollars. It is worth noting that Bitcoin has a capitalization of $325,000 million dollars, while Ethereum exceeds $148,000 million.
At the time of writing, COIN was worth $34.58, with a 1.68% retracement in the last 24 hours (it hit a low of $34.35). The macro look shows the serious problems of the company: in November it already fell 21%, while it has already dropped more than 86% in the last year and 91% since its all-time high, which it reached in April 2021, shortly after going on the market.
Crypto winter has affected everyone in the crypto ecosystem
This bleak picture is similar to what most cryptocurrencies have this winter. BTC, which reached $68,000 in November 2021, is now -75% of that ATH, while ETH, with a peak of $4,800, is also -75% since then.
“Cryptocurrency traders remain skeptical about keeping their cryptocurrencies on exchanges. Coinbase has an uphill battle as many operators eye moving their cryptocurrencies to cold storage as rising yields keep pressure on this space, and an uncertain regulatory path.”said Edward Moya, who is a senior market analyst at Oanda, another online broker.
“The fact that Dogecoin has a higher market cap than Coinbase shows you that there is still something wrong in the cryptoverse.“, added Moya, who also believes that the exchange could lose a new 10% and thus touch a floor of $30 dollars in the coming months. Beyond the difficult moment, he does see it as a good investment for the future and a “decent long-term way to be in crypto”.
In addition to the centralized exchanges already mentioned, Robinhood (HOOD) also reported the drop in the volume of cryptocurrency trading, up to 80% of its volume, which affects it when it comes to collecting commissions.
The digital asset space is in crisis and even the centralized giants are seeing the consequences. When will better airs arrive?
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