Binance lowers fees - Coinbase shares in free fall

6/22/2022, 02:05 PM
Binance lowers fees - Coinbase shares in free fall
The crypto world is in the midst of a major shift as more investing platforms focus on joining equities and crypto trading experiences in one place. This is putting a dent in the traditional retail investing world, as major stock brokerages are shifting to commission-free online trading. Robinhood, which got its start in stock trading for retail investors, has since started to prioritize crypto trading for customers. Last month, crypto exchange FTX US revealed plans to roll out zero-commission stock trading. Block's Cash App, SoFi and Public all also offer trading in both stocks and crypto.
This new landscape is having a direct impact on Coinbase, one of the largest cryptocurrency exchanges. Binance.
US, the U.S. affiliate of the largest crypto exchange in the world by trading volume, recently announced that it will allow users to make spot bitcoin trades for the U.S. dollar and stablecoins tether, USD Coin and Binance USD without paying spot trading fees. This move puts pressure on Coinbase, which has historically relied heavily on trading volumes for revenue but has been looking to diversify its revenue streams in recent months. As a result of this competitive pressure, Coinbase shares fell on Wednesday morning.
Clearly, the competition among crypto exchanges is heating up at a time when cryptocurrencies are already experiencing a prolonged bearish period that has led to lower overall trading volumes across the industry. In order to stay ahead in this competitive environment, it will be crucial for Coinbase to continue diversifying its revenue sources and expanding its customer base beyond just those who are interested in buying and selling cryptocurrencies