Coinbase Holds 11% Of Entire Crypto Market Cap

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A new report by Messari has shown that San Francisco-based crypto exchange, Coinbase is now one of the heavyweights of the crypto market after its recent findings. The analysis platform in question, Messari, is regarded as one of the most accurate in the world churning out up-to-date statistics after firms’ statistics.

In this new report, the analyst’s platform mentioned that Coinbase had witnessed a massive increase in the number of crypto in its holding judging by the massive rise in the price of digital assets towards the last quarter of 2020. In the report, Messari mentioned that Coinbase now holds what could be regarded as 11% of the entire crypto market cap on its exchange.

Coinbase holds $780 billion worth of digital assets

Even though most crypto exchanges have a cold wallet where they store funds belonging to users, these analysts have always done well to track the movements of funds in the wallets. This is also not surprising as Coinbase allows users on its platform to deposit a huge list of assets, ranking as one of the crypto exchanges that supports a broad base of digital assets. Surprisingly, Coinbase allows users to trade half of all the coins it offers on its platform, with the digital asset supporting 90 top assets.

In the same span, the digital assets’ price saw a massive rise as they registered $90 billion total value. However, much has changed since then, with the assets also doubling in price since then and recording a massive $780 billion market cap. Even though Coinbase holds close to 90 digital assets in its platform, it didn’t deter Bitcoin and Ethereum from being the force to reckon with on the platform. This can be attributed to both digital assets being the most popular and the ones who have been trusted to bring home profits.

Coinbase earns 93% of revenue from retail traders

Out of the total population on Coinbase crypto exchange, 83% of users are either held, Bitcoin or Ethereum or both. As expected, Bitcoin has always been the top shot in the crypto market as most users prefer to trade the digital asset compared to other coins. In 2020, Coinbase reported that 70% of its users held the digital asset, ranking as the first in the coins held on the platform.

Over the same period, Ethereum saw people put more faith in it as the digital asset grew from a small hold percentage of 9% to 13%. The report published by Mira Christiano touched all this aspect. The public listing that the exchange is set to undergo in the coming weeks. Christiano mentioned that 93% of the revenue that Coinbase has gotten on the platform up until this moment has come from retail traders.

He pointed out that retail traders have had to pay 30 times what an institutional investor would pay. This is because they carry out more transactions on the platform than that of institutional investors, which might be one transaction in a year.

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