Coinbase’s existence and control in the US cryptocurrency market faces a major risk scenario: growth in competition. Something promoted by the White House itself, and by the arrival of new actors into the business.
After debuting at the NASDAQ Index in 2021 and participating in the S&P 500 this year, Coinbase has found that its actions have increased by 70% since Donald Trump chose it As of November 2024, the current market capitalization is $830 million.
However, the second quarter results showed a weaker figure than expected, with the title value down 15%.
Ryan Rasmussen, head of research at Bitwise Asset Management, told the Financial Times newspaper that Cryptocurrency Company “has the initial advantage and we’re losing it.”
Similarly, Morningstar variable income analyst Michael Miller warned that Coinbase “has no economic pit” and that regulations “will lead to greater competition.”
Along the same line, Mark Palmer by the benchmark company is New US rules give “green light for new competitors to participate.”
It is important to remember that the genius law regulating the issuance and negotiation of stubcoin in the United States was recently promulgated by the President.
This was a milestone in regulating the digital assets sector in North America and thus facilitated the arrival of more actors.
However, Coinbase claims that this competition will benefit the entire sector. Shan Aggarwal, Vice President of Corporate and Business Development, said his goal is Recreate banks and brokerage services with a cryptocurrency-based modelBy looking at the third phase of using these assets as an application platform.
According to the executive, the company is working in parallel to integrate a comprehensive financial system at these stages.
Staking growth and alliances with circles around USDC’s stable house have become related revenue streams. Additionally, recent acquisitions of derivatives have traded $2.9 billion in deals.
The strategy includes links with banks such as JPMorgan and PNC, expanding the relationship between traditional finances and the cryptocurrency ecosystem.
Coinbase is one of the leading cryptocurrency exchange platforms founded in 2012, allowing users to buy, sell and store digital assets in a 24-hour trading volume, reaching approximately $3.78 billion.
It offers tools and custody services for beginners and advanced investors, and supports around 320 cryptocurrencies.