Coinbase has a ways to go before it becomes the “#1 staking provider.”
The last time Coinbase reported quarterly earnings, in August, the company told shareholders it had prioritized development of its staking products and has a long-term goal of becoming the top provider.
When a user stakes their crypto assets, they’re being loaned out to validators on blockchain networks. Validators use the funds to secure the network and process transactions. In return, users receive a portion of the validator’s rewards. It’s become an increasingly popular product for Coinbase, which saw transaction revenue fall 44% in the third quarter.
While reporting its Q3 earnings on Thursday, Coinbase (COIN) had mixed results for its “blockchain rewards” category. It saw $63 million in revenue for the quarter, down 18% from $77 million the same time last year.
Keep in mind there’s hardly any asset that compares favorably to this time last year, when crypto markets had surpassed a $3 trillion market capitalization and Coinbase’s share price closed at $337.05. Since then, the global crypto markets have lost two-thirds of their value and COIN has dropped 83%, ending trading at $58.82 on Friday.
Comparing the first nine months of 2022 to the same period last year tells a different story.
In the first three quarters of 2021, Coinbase earned $120 million in revenue from blockchain rewards. Over the same period this year, the company increased that by 77% to $213 million.
“In Q3,…
