Coinbase: record of shares and trading volume despite technological challenges

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Recently, the value of Coinbase stocks has reached the highest peak in recent months, driven by a significant increase in trading volume. 

Nevertheless, the platform experienced temporary issues due to high traffic. In addition, Cathie Wood’s Ark Invest liquidated over 17 million dollars in COIN shares yesterday.

Let’s see all the details below. 

Coinbase faces issues, but stocks reach unprecedented levels

As anticipated, the all-time highs reached yesterday by Coinbase’s stocks are incredible. However, a significant web traffic that caused an anomaly in the cryptocurrency market, accompanied by an increase in trading volume.

On Wednesday, Coinbase’s stocks recorded a modest increase of 1%. A value enough to close above the threshold of 200 dollars for the first time since January 2022, as reported by TradingView.

At the end of Wednesday’s session, COIN was quoted at $200.80, showing a 58% increase in the last month. 

Nevertheless, the title remains down by over 40% compared to the all-time high of 342.98 dollars recorded during the peak of the cryptocurrency market in November 2021.

Coinbase, according to the most recent data, is currently valued at 37.4 billion dollars. The trading volume on the exchange has seen a significant increase, exceeding 8.6 billion dollars in the last 24 hours. 

So almost double the volume generated in the previous 24-hour period. Furthermore, significantly higher than the daily trading volume recorded in the last year, which ranged from 200 million to 3 billion dollars according to CoinGecko data.

To contextualize this data, it is interesting to note that yesterday’s trading volume represents approximately 5% of the total for the fourth quarter of 2023 and 10% of the volume for the third quarter of 2023. 

The issue with the app following the surge of Bitcoin to $64,000 

As mentioned, the sudden increase in transactions has caused a malfunction in the Coinbase app. 

Which displayed customer balances as null during the recent trading frenzy. That is when the value of Bitcoin surpassed $60,000, reaching a peak of $64,000 on Wednesday.

The CEO of Coinbase, Brian Armstrong, stated on X that although an increase in traffic was expected, it exceeded expectations, forcing the company to look into auto-scaling solutions and resolve any bottlenecks. 

Armstrong thanked users for their patience during the situation.

Despite the technical issue, institutional issuers of Bitcoin ETFs such as BlackRock, Ark Invest, and Grayscale Investments, which use Coinbase as the custodian of the cryptocurrency, have not been directly affected. 

However, Nate Geraci of investment consultant The ETF Store pointed out that Bitcoin futures ETF issuers have not been affected by the issues.

According to the Coinbase status page, the performance degradation has been resolved. 

The increase in the value of Bitcoin has sparked a new interest among users, with Coinbase’s app store ranking going from 300 to 174, reaching a yearly high. 

Furthermore, Coinbase has gained 15 positions in the finance category on the App Store in the United States, according to data from The Block. 

Ark Invest’s sales for Coinbase

As mentioned , Ark Invest recently liquidated 86,298 shares of Coinbase, equivalent to about $17.3 million, from its exchange-traded fund for innovation, ARKK. 

This move is part of the process of rebalancing the weightings of the fund adopted by the investment manager in response to the surge in COIN stock prices during this month.

Yesterday’s sales deed follows other transfers made by Ark Invest, including the 46,531 shares of Coinbase (valued at $9.3 million) on Tuesday and the sale of COIN worth $7.1 million on Monday.

The previous week, Ark Invest sold Coinbase shares for a total of 16 million dollars.

These recent sales occur following Coinbase’s announcement that exceeded analysts’ expectations for the fourth quarter of 2023. 

In particular, recording revenues of 953.8 million dollars, an increase compared to the 629.1 million dollars of the corresponding quarter of 2022.