Crypto: Coinbase about to beat Binance?

At Coinbase, after a tumultuous 2022, things finally seem to be clearing up in 2023. The American cryptocurrency exchange is posting impressive performances: a skyrocketing rise in its COIN stock on the stock markets, record profits, and much more. other successes. But what is the secret of this success story? Some wonder if Coinbase is not benefiting from a helping hand from the US government to destabilize its rival, Binance.

The Coinbase boom

Despite some turmoil, including a dispute with the U.S. Securities and Exchange Commission and recent technical outages that have damaged its reputation, Coinbase appears to be on the right track.

At the heart of crypto transactions, Coinbase International Exchange sees its numbers explode, signing an exceptional performance. In March, daily trading volumes bordered on incredible six billion dollar summit. A meteoric rise, marked by broken records and growing demand.

This upward trend is not the result of chance, if we refer to the analysis of CryptoPolitan. It arises from a frank market response to the availability of an international trading platform, reliable and regulated. A Coinbase spokesperson highlighted the importance of this growth, putting the exchange in a favorable position for continued expansion or a possible downgrade of Binance.

But that's not all. At the same time, Coinbase's share price is skyrocketing. A surge of more than 10% in 24 hours, 44% in February and 346% last year, propelling the stock to more than $280. A trend that reflects the strength of the cryptocurrency marketrecording spectacular growth of more than 61% since the start of the year.

However, despite this remarkable performance, the action remains below its November 2021 all-time high setting its price at $381. However, this progression reflects growing interest in the cryptocurrency market and the crucial role Coinbase plays in facilitating international trade for its customers.

A spectacular rise in the crypto markets

The last quarter of 2023 was one of the most generous for Coinbase, the American cryptocurrency giant, specifies Decrypt. According to Q4 results, the San Francisco-based company achieved a considerable profit of 273.4 million dollars, thus reversing a formerly deficit trend. A notable financial metamorphosis since the previous year, at the same period, the company posted an abysmal loss of $557 million.

The secret of this transformation? Coinbase was able to profit from the interest generated by its stablecoin USD Coin (USDC), recording a dizzying increase of almost 18%, for an impressive amount of $171.6 million.

But the good news doesn't stop there. The stock market has also eased its financial burden by reducing its debt by $413 million. A feat hailed by investors, since Coinbase shares jumped some time later, a sign of newfound confidence.

This improvement is partly explained by the general improvement in the cryptocurrency market. With bitcoin skyrocketing throughout 2023, driven by the long-awaited arrival of crypto ETFs, Coinbase has capitalized on this trend by providing custody and other services to many bitcoin issuers.

But… the SEC triumphs over Coinbase: Crypto under surveillance

According to the latest investigations of U°Todaythe US Securities and Exchange Commission wins a partial victory against Coinbase, American leader in cryptocurrencies. The ruling allows the SEC to sue Coinbase, claiming its scheme involves the unregistered sale of securities.

A hard blow for Coinbase which sought to reject the action. The SEC maintains that some cryptos on Coinbase are securities. Judge Polk Failla questioned the agency's interpretation of the law but denied Coinbase's motion, citing sufficient SEC pleading.

The court's decision came as a surprise, with analysts expecting a 70% victory for Coinbase. Both parties are now preparing for a discovery phase.