Coinbase's second-quarter trading and interest revenue declined, but cost control was appropriate, leading to gradually shrinking losses.

The U.S. compliant exchange Coinbase released its second-quarter financial report, showing a decrease in cryptocurrency trading revenue to $3.271 billion, the lowest level since last year, due to regulatory pressures in the United States. This resulted in a net loss of $97.4 million, slightly higher than the $78.9 million in the first quarter but significantly lower than the losses during last year's crypto winter, and better than market expectations. Coinbase's stock price remained near flat yesterday and has risen 148% year-to-date.

Trading and Interest Income Decline Simultaneously

Due to regulatory pressure in the U.S., cryptocurrency trading revenue in the second quarter decreased to $3.271 billion, down 13% from the previous quarter, attributed to a 37% decline in overall trading volume compared to the previous quarter. During the same period, the overall spot market trading volume in the U.S. dropped by 33%, reaching its lowest level since last year. Interest income also decreased to $2.014 billion, down from the previous $2.408 billion, due to the decrease in USDC market value and a reduction in customer fiat currencies.

Overall, while revenue has decreased, costs have been controlled with expenses reduced to $7.81 billion, a 13% decrease from the previous quarter. The decrease is mainly attributed to reduced expenses in technical research and development, as well as the restructuring costs recognized in the previous quarter. Coinbase has laid off 30% of its workforce last year, cutting nearly 50% of its expenses to cope with the crypto winter.

Overall, Coinbase's quarterly losses are gradually shrinking, and looking ahead, Coinbase emphasizes a focus on product optimization and innovation, as well as building infrastructure for crypto use, including the Layer 2 platform Base and Wallet as a Service (WaaS) service, expected to lead 1 billion people into the crypto world.