Kaiko Unveils Deeper Insights into Coinbase's Market Movements, Exchange's Take Rate Drops to Lowest Point Since Early 2022

Kaiko, a blockchain and crypto market analytical platform, offers deeper insights into the movement of the platform. Coinbase went to its peak in mid-2023

Coinbase’s Q4 performance may be indicated by its Ethereum staking activity, which Kaiko’s monitoring tool shows dropped in Q4 as the Beacon Chain experienced less activity.

Coinbase, the second-largest ETH staking platform after Lido, saw its staking market share decline over the past six months, dropping by 3.8% with an outflow of 1.29M ETH. This observation may indicate the platform’s struggle to generate revenue from blockchain rewards despite being supported by higher ETH and SOL prices.

Furthermore, Kaiko’s analysis reveals that the return of high-fee generating retail traders was not observed in significant numbers. The investors’ Coinbase trading share decreased to 18%, marking a substantial decline from 40% in 2021. This decrease can be attributed to increased competition among exchanges offering fee discounts.

Coinbase, being one of the most liquid exchanges in the U.S., benefits from its fee structure as a market maker. However, due to high competition and regulatory uncertainty, there was a slowdown in new listings. Kaiko’s analysis also shows a sharp decline in actively traded pairs on both Binance.US and Coinbase following the lawsuits in mid-2023.

If the regulatory framework improves, Coinbase’s momentum will be boosted once again, allowing the platform to expand its listings and attract more potential retail traders.