By the end of July, Coinbase may leave the list of the ten largest cryptocurrency platforms in terms of trading volume. Bloomberg writes that a similar scenario is not ruled out by Mizuho analysts.

Since the beginning of July, Coinbase has dropped to 14th place in this indicator. At the end of 2021, he took fourth place.

The share of the largest US bitcoin exchange in the top 30 fell from 5.3% in the first quarter to 3.6% in the second quarter and the current 2.9%, according to analysts’ calculations.

Mizuho warned that confirming his predictions could make the company’s profitability trajectory “troubled.”

“We are concerned that the competitive nature of the industry may require further increases in marketing spend. Combined with trends in weak trading activity, this is likely to impact further profitability.” they announced.

Analysts attributed Coinbase’s vulnerability to its business model – the platform is “suffering” from increased competition in a declining market, while fees are perceived as too high and unsustainable.

Recall that in January-March 2022, the stock market suffered a net loss of $ 429.7 million, this figure almost doubled analysts’ expectations.

Coinbase has begun optimizing costs in the face of a weak start to the year and the downturn in the cryptocurrency market.

Earlier, the company’s CEO, Brian Armstrong, revealed that about 18% of employees are down due to the start of the crypto winter.

In July, the company announced further expansion into European markets.

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