Coinbase has seen a 13% consecutive drop in the amount of income generated from transactions

On Thursday, Coinbase announced the financial results for the second quarter. Mark Palmer, an analyst at Berenberg, predicts that “COIN” will drop below $39 in the near future.

Despite the fact that the cryptocurrency exchange posted market-beating statistics for its fiscal second quarter, the share price of Coinbase Global Inc. fluctuated during extended hours today before ultimately ending unchanged.

The decline in transaction revenue, which came in at $327 million, was approximately 13% lower than the previous quarter’s total. Trading volume also plummeted, falling from $145 million in the previous quarter to only $92 million now.

Another factor that contributed to the poor results was a drop in interest income of about 17% from the previous quarter’s level to $201 million. Mark Palmer, an analyst at Berenberg, sent out the following email in response to the publication of the earnings report:

“Given the continued reductions in USDC’s market size and the legal obstacles surrounding staking programmes, interest income and staking revenue look to be in danger going ahead.”

Coinbase’s USDC assets generated an interest income of $151 million for the company during the second quarter.

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