The crypto economy is growing due to distributed ledger technology growth and rising venture capital investments. Coinbase (NASDAQ:COIN) is a well-known name in the crypto industry with a significant market share, and it has gained significantly over the past few months. However, last week COIN reported a nearly 30% fall in third-quarter trading volumes on a sequential basis. So, with that, is the stock still worth buying? Keep reading to find out. Coinbase Global , Inc. (COIN), in San Francisco, is the most prominent digital asset exchange in the United States. It primarily provides financial infrastructure and technology for the crypto economy. Over the past month, the stock has gained 37.6% in price to close yesterday’s trading session at $342.98. COIN shares are trading well above their 50-day and 200-day moving averages of $290.89 and $257.92, respectively.
Shares of COIN retreated initially after the company reported lower-than-expected revenue growth amid the volatility in the price of Bitcoin and other digital tokens last week. However, the stock rebounded soon thereafter. “The sentiment is overwhelmingly bullish, and it’s playing out in the fourth quarter—when fireworks usually happen,” said Natalia Radyushkin, the chief financial officer of crypto platform Unbanked.com.
COIN’s trading volume slumped nearly 30% sequentially to $327 billion in the third quarter, from $462 billion in the prior quarter. And analysts expect the stock to witness volatility in the coming weeks. On the other hand, given the growing popularity of crypto trading worldwide, and with businesses investing significantly into growing their crypto infrastructure, COIN’s long-term prospects look promising.