Coinbase surprised investors on Tuesday with its fourth-quarter earnings, reporting net revenue of $605 million, compared with estimates of $588 million. Despite the gap in expectations, the crypto exchange’s revenue was still sharply down year over year, with a 76% decrease from its net revenue in the fourth quarter of 2021 and a 57% decrease in full-year net revenue from 2021.
In its shareholder letter, Coinbase attributed the difficult year to overall trends in the sector, with the crypto market cap declining 64% or about $1.5 trillion over the course of 2022. As a result, the exchange’s total trading volume declined 50% from 2021.
