In a tumultuous day for the cryptocurrency market, major cryptocurrencies experienced declines of 2-3% following comments from Federal Reserve Chair Jerome Powell, who indicated that a rate cut in December is not a certainty. Bitcoin tumbled to $110,100, while Ethereum dropped to $3,900. Amid the market’s overall downturn, Binance’s situation took a political twist, with U.S. Senator Chris Murphy alleging that the exchange facilitated the launch of a Trump-themed memecoin in exchange for the pardon of its CEO, Changpeng Zhao (CZ).
On a brighter note for the sector, Coinbase reported impressive Q3 earnings that surpassed market expectations. The exchange recorded a revenue of $1.9 billion, marking a 55% increase year-over-year, and a net income of $433 million—an astonishing 477% rise compared to the previous year. Key metrics showed that transaction revenue climbed over $1 billion, driven by strong institutional activity and high-frequency trading, while monthly transacting users (MTUs) reached 12.6 million, reversing a prior decline.
Coinbase’s CEO, Brian Armstrong, expressed optimism regarding the company’s future, highlighting their ongoing development towards becoming a comprehensive exchange platform. Armstrong’s statements emphasized the growing importance of stablecoin adoption in enhancing payment processes, anticipating continuous growth driven by institutional and corporate interest.
The company also reported that its Layer-2 chain, known as Base, achieved positive adjusted EBITDA for the first time, further contributing to its strong financial performance. Additionally, Coinbase is projecting Q4 revenue between $2.2 billion and $2.3 billion, contingent on average daily trading volumes and a favorable crypto market environment. The firm also made headlines by purchasing around $300 million worth of Bitcoin in Q3.
Meanwhile, some notable trends emerged in the broader crypto market. The market suffered a significant liquidation, with over $870 million wiped out as Bitcoin’s price dipped to $106,000, causing many altcoins to fall between 5-10%. Amid the losses, some crypto assets stood out, such as ZEC and AERO, which saw respective gains of 2%.
The meme coin market also faced turmoil, with leading memecoins such as DOGE and Shiba Inu experiencing drops of 2% and 1%, respectively. In contrast, lesser-known tokens like LAB and pippin showed resilience, surging by 80% and 69%.
In the corporate treasury sector, MicroStrategy reported a $2.8 billion profit for Q3, bolstered by its substantial Bitcoin holdings exceeding 640,000 BTC, and Western Union applied to trademark its forthcoming stablecoin, WUUSD.
As the landscape continues to evolve, the mix of political, regulatory, and market dynamics will be pivotal in shaping the future of cryptocurrencies and related assets.
