Coinbase, the most renowned American crypto exchange, recently released its third-quarter 2022 report. However, its sales figures are unimpressive.

Furthermore, the exchange recently released its third-quarter report, which fell short of most analysts’ estimates.

According to the report, Coinbase’s revenue fell by half from the previous year due to changes in trading activity. As a result, the company lost around $545 million, compared to a profit of $406 million in the third quarter of 2021.

Coinbase informed its stockholders of the decline in revenue. It stated that the firm’s negative posture was created by poor macroeconomic conditions and a decreasing crypto market.

As a result, the company’s trading volume plummeted, resulting in a loss in revenue.

The crypto exchange typically earns about 90% of its earnings from transaction fees, which is greater than the industry average. However, the gloomy crypto market is hampering its activity.

The company’s report also mentioned that its Q3 transaction revenue was $366 million. This represents a 44% decrease over the previous quarter.

However, subscription and service revenue increased by 43%, reaching $211 million. As a result, overall revenue for the third quarter decreased by 28% compared to Q2 2021.

Trading volume fell 27% to $159 billion from $217 billion in the previous quarter. Ethereum outperformed Bitcoin in terms of performance. It accounts for 33% of the company’s total trading volume over the period, while Bitcoin accounts for 31%.

Furthermore, the firm stated that its trading activity has shifted significantly away from the United States due to increased regulatory concerns and some uncertainty.

According to Coinbase, the macroeconomic factors drove retail investors to hold, resulting in lower trading volume.