Public-listed cryptocurrency service provider Coinbase (NASDAQ: COIN) has continued to see major value erosion this year. The COIN stock is down by 90% since its listing in April last year, ending trading at $35.17 on Tuesday.
The exchange’s market capitalization is now just at $8 billion, which is $1 billion less than that of memecoin Dogecoin (DOGE). Well, this shows Coinbase is facing the music and double-whammy of a highly volatile U.S. equity market and a highly volatile crypto market.
On top of it, recent developments like the collapse of the crypto exchange FTX and uncertainties in Binance’s business have led to s significant drop in investor sentiment toward crypto service providers. As a result, a lot of crypto investors have been moving funds off exchanges and into self-custody.
Crypto exchange Coinbase continues to be among the hardest hit this year. The exchange has laid off 18% of its workforce which is roughly equal to 1,200 people. Speaking on this development, Michael Safai, partner at crypto trading firm Dexterity Capital said:
“Coinbase is tied to the fortunes of the broader crypto markets. Dogecoin has no real connection to the macro, but instead is driven almost primarily by headlines and hype, retail investors seem to be hungry for one last pop.”
Dogecoin Rise Once Again
Dogecoin (DOGE) has continued to be in the news despite the crypto winter of 2022. However, a large part of the DOGE price movements can be attributed to Elon Musk’s acquisition of Twitter. The Dogecoin community strongly hopes that someday Musk will integrate DOGE payments into Twitter.
However, several market analysts still fail to find a substantial level of substance in the meme cryptocurrency. “Dogecoin was a simple, straightforward joke that punches above its pay grade all the way to become a heavyweight champion,” said Teong Hng, chief executive officer of crypto investment firm Satori Research.
Coinbase has recently published a document explaining the regulatory demand for the crypto space. The crypto exchange expects significant progress in legislation to be made next year in 2023.
Coinbase wants the U.S. Congress to push the CFTC and SEC to publish their respective categorization of crypto.