The market capitalization of the U.S. crypto exchange Coinbase fell below $10 billion, while when listed on the stock market it reached a solid $100 billion.
On November 22, 2022, Coinbase’s capitalization fell to $9.3 billion, and COIN’s share price collapsed 9% to $41.2 overnight. This is the lowest value in Coinbase’s history since listing on the Nasdaq stock exchange.
At the time Coinbase went public on Nasdaq in April 2021, the company had a capitalization of $100 billion. COIN shares traded skyrocketed then and their value soared to $381 per share along with a capitalization of $99.5 billion.
Among the main reasons the exchange collapsed were macroeconomic factors, the collapse of FTX, market turbulence and high commissions.
For example, Coinbase’s competitor Binance no longer charges a commission for trading BTC and ETH, while Coinbase still has an extremely high commission of 0.6% per transaction.