Comparing the volume of centralized exchange Coinbase & decentralized Uniswap with Bitcoin price gives you an idea
Crypto exchange volumes often fluctuate with Bitcoin price as it is the most dominant and well-known cryptocurrency. When the price of Bitcoin increases, the trading volume on exchanges usually also increases as more people become interested in buying or selling Bitcoin to take advantage of the price movement.
Conversely, when the price of Bitcoin decreases, the trading volume may also decrease as people may hold onto their Bitcoin or trade in other cryptocurrencies instead. However, other factors like market sentiment, news events, and regulatory changes, can also affect trading volumes on crypto exchanges.
As one of the biggest and leading centralized crypto exchanges, Coinbase gets ready to report its quarterly results on Feb. 21, industry observers and investors await with bated breath. According to the publicly available data, the assumptions are that Q4 is going to be flat for Coinbase, with marginal growth in net revenue of $580 million.
Looking back at Q4'22, In Q4, Coinbase had total volumes of $145 billion, down 9% over the quarter. Daily volumes temporarily spiked to $5+ billion in the period around the FTX bankruptcy, but the momentum was not sustained. As you can see in the chart above, Coinbase’s trading volumes move in tandem with the price of bitcoin and volumes on Uniswap.
The price of BTC and volumes on Uniswap fell by 15% and 17% over the last quarter, and Coinbase volumes shared a similar fate, falling by 9%. Their relationships have held true for the entire year, as such BTC price and Uniswap volumes are useful indicators to project Coinbase volumes.
Originally Published on Medium
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