Coinbase Stock Plunges 14% as Crypto Trading Revenue Falls

Coinbase stock extended its decline on Friday, July 31, after the company reported weaker-than-expected second-quarter results.

COIN fell about 14% to $140 during the session, its lowest price since late June. The decline followed a 5.6% drop during Thursday’s extended trading session.

Coinbase reported $1.22 billion in revenue, below analysts’ average estimate near $1.29 billion. The company also recorded a net loss of $359.5 million, or $1.36 per share.

Coinbase Stock Plunged as Its Revenue Dropped

Coinbase, the biggest crypto exchange in the United States, is facing substantial challenges this year as the crypto winter has continued. Bitcoin and most altcoins have dropped by double digits this year, with the valuation of all coins falling from over $4 trillion to $2.1 trillion.

The falling crypto prices has had a negative impact on Coinbase and other exchanges, with BitMart closing down. Coinbase, despite its more diversified business, has not been immune to the ongoing crypto plunge.

This week’s earnings report showed that Coinbase’s revenue continued falling in the last quarter. It made over $1.2 billion in Q2, continuing a downtrend that started in the third quarter of last year when it made $1.86 billion. Its quarterly revenue has dropped in all quarters since then.

Coinbase blamed the sell-off to several factors, including the fact that its volume dropped by 15% QoQ. Spot trading volume in its platform fell by 25% in the last quarter, a trend that may continue in the near term if the crypto winter gains steam.

The company’s transaction revenue dropped by 20% to $452 million, with institutional transaction falling by 26% to $100 million.

Coinbase’s Diversification is Helping

On the positive side, the company is highly diversified, with stablecoins playing an important role. Its stablecoin revenue jumped to a record high of $292 million during the quarter. This revenue comes from its USDC holdings, which generate income from the bond market.

The risk, however, is that the USDC supply is not growing. CoinMarketCap data shows that the market cap has dropped from nearly $80 billion earlier this year to $71 billion today. This slowdown may affect its revenue over time.

Coinbase has also invested in other services such that its services and subscription services revenue now accounts for about 48% of its business. In the future, this growth will help it to reduce its overreliance on transaction revenue.

The other key positive is that Coinbase has a healthy balance sheet and is managing its costs well. It ended the quarter with over $10 billion in available resources, including $2.4 billion in cash at banks, $3 billion in money market funds, and $2.9 billion in stablecoins. It also has $94 million of cash in venues.

At the same time, it is reducing its costs, most recently through layoffs. It is also reducing the impact of dilution by repurchasing shares. It ended the quarter with 264 million in outstanding shares, down from last year’s high of 269 million.

Analysts expect that Coinbase’s revenue will remain under pressure as the crypto winter continues. The average estimate among analysts is that its revenue will drop by 36% this quarter to $1.19 billion.

COIN Stock Price Technical Analysis

Coinbase stock fell sharply after reaching approximately $221.47 on May 14. The decline pushed COIN toward the $140–$143 support region.

That area previously supported the stock during February and June, giving it added technical relevance.

The chart also showed a descending triangle, with falling highs developing above relatively flat support.

Traders generally consider a descending triangle bearish after price closes below its horizontal boundary.

However, the formation remained near its support line and required a confirmed breakdown.

COIN stock also traded below its major moving averages. The Relative Strength Index remained below its neutral level and continued pointing lower.

The Murrey Math Lines indicator placed the stock near an oversold region.

Oversold readings can reflect strong selling momentum. They can also precede a temporary rebound when traders cover short positions or buyers defend support.

This technical analysis is based on historical chart patterns and indicator readings. It does not guarantee future Coinbase stock performance. Equity and crypto-related stocks remain volatile, and investors should conduct independent research before making financial decisions.

A daily close below $140–$143 would confirm a break of the current support region.

Such a move could expose the next psychological level near $120 before the wider $100 target becomes relevant.

However, the $100 projection remains conditional rather than the most probable guaranteed outcome.

A recovery above $160 would reduce immediate selling pressure. COIN would then need to reclaim its moving averages and the $175 region to improve the wider structure.

Coinbase stock remained bearish after the earnings decline. Its next move depends on whether buyers defend the $140–$143 support zone.