Coinbase Loses Retail Crypto Trader Robinhood Mizuho
  • Analysts at Mizuho said Coinbase could lose market share in retail cryptocurrency trading.
  • Dan Dreff continues to see downside potential on crypto exchanges at $27 per share.
  • Coinbase stock is currently down 35% from its year-to-date high in March.

Dan Dreff says Coinbase Global is still at risk of a 50% share price. He is a senior analyst at Mizuho.

Coinbase stock could crash to $27

Dref maintained his “underperforming” rating for the cryptocurrency exchange today. His $27 price target suggests the stock could plummet by a staggering 50% from here.

The analyst is also very bearish on Coinbase shares because he suspects the company is losing market share to rival Robinhood Markets in retail trading.

Our analysis suggests that the combined COIN share of COIN retail and Hood cryptocurrency trading volume tends to be lower in April compared to around 2000 in April. The ratio for the last three quarters was 65%.

Some of that could be related to a lawsuit filed against cryptocurrency companies last week by the U.S. Securities and Exchange Commission.

Coinbase Raises Transaction Fees

Dan Dref also cited transaction fees as a possible reason Coinbase Global lost to Robinhood.

A Mizuho analyst told clients in a research note today that crypto exchanges have resorted to raising fees for small-value traders to make up for lower trading volumes, which has hit Robinhood, which has so far refrained from raising fees. said it was possible.

Assuming COIN maintains its share in April and the retail interest rate remains constant at 168bps, April’s retail transaction volume would be $117 million.

In contrast, the company recently report Total transaction revenue for April decreased by $110 million. Coinbase stock is currently down 35% from its year-to-date high.

By Jules

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