Coinbase returns to pre-IPO valuation as market cap drops below $8b

Coinbase, one of the most popular cryptocurrency exchanges in the world, is back at valuations last seen in 2018 ahead of its initial public offering (IPO).

Coinbase returns to pre-IPO valuation despite strong growth

The leading digital asset exchange now has a market capitalization of around $8 billion, despite the fact that the company has experienced significant growth in several areas since going public.

Notably, Coinbase has seen a 4x increase in its user base, with monthly active users (MAUs) growing by the same amount. Institutional volume also increased 13x, demonstrating strong adoption of Coinbase by large organizations.

Coinbase returns to pre-IPO valuation as market cap drops below $8B - 1
Coinbase stock price 5-year chart. Source: Google.

It’s not 100% clear why Coinbase is back to pre-IPO valuations, but it could be due to a combination of factors. One possibility is that there have been changes in the overall cryptocurrency market that have affected Coinbase’s valuation. Another possibility that the company is faced with internal challenges or external competition that has affected its value.

While external competition could be a factor, it is worth noting that Coinbase sees a decline in 2022 for FTX, another large exchange based in the United States. failure of ftx Should have strengthened Coinbase’s position in the US and potentially helped increase Coinbase’s market share.

Coinbase’s return to its 2018 pre-IPO valuation is a notable development and could be a result of overall declining trust in centralized cryptocurrency exchanges. It will be interesting to see if the company can maintain its strong position in the highly competitive cryptocurrency exchange market.

Coinbase ends its IPO with a valuation of nearly $100 billion

Coinbase Global to make its public market debut in April 2021 With a valuation of around $100 billion, The exchange was able to capitalize on the growing popularity and value of virtual currencies such as Bitcoin And Ethereum, When it began trading, Coinbase shares were priced at $381 each, valuing the company at approximately $86 billion.

Back in March, ahead of its IPO, Coinbase sold each share in a private auction for up to $375. It is estimated that the company can achieve an IPO valuation of around $100 billion.

Bloomberg reports that shares in Coinbase Global Inc. are trading at between $350 and $375 per unit on the Nasdaq private auction market, giving the company a pre-IPO valuation of between $90-$100 billion. Trading reportedly ended with the share price at $350.

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