Kenne Michael 
Significantly, a substantial portion of the outflow, equivalent to $1.17 billion, was attributed to Coinbase Custody. Analysts analyzing Nansen data have proposed that Coinbase may undertake internal wallet transfers to manage these figures.
The recent publication of Coinbase’s Q2 report, the world’s second-largest cryptocurrency exchange by trading volume, has dampened the crypto community’s spirits.
In comparison to the same period in 2022, consumer and institution transaction volume decreased by 70% and 54%, respectively.
This decline in transaction volume has been linked to the overall decrease in the capitalization of the cryptocurrency market and the consequent deterioration in average cryptocurrency prices. Since March, the relative stability of Bitcoin’s price has diminished opportunities for significant profits.
Coinbase’s CEO, Brian Armstrong, is at odds with SEC chairman Gary Gensler over compliance issues in the crypto market. As a result, Armstrong is steering Coinbase towards diversification to navigate the volatile trading environment.
According to Reuters, despite declining revenue from traditional currency buying and selling, Coinbase’s focus on staking has been fruitful, contributing 13% to the company’s overall revenue.
Binance, a competitor exchange, faces similar difficulties. According to Kaiko data, Binance’s market share in the United States plummeted from 27% in April to just 1% by the end of June.
In addition, France is investigating Binance’s operations, Belgium and the Netherlands are restricting Binance’s activities, and Germany is postponing the issuance of Binance’s license.