- Coinbase crypto exchange could surpass 70 million users this year.
- The exchange started the year with just over 50 million users.
- The prediction is based on data analysis and fundamental factors.
The number of Coinbase verified users could rise by 30% to reach 70 million before the year is over. This is because the top-ranking crypto exchange is expected to continue recording a high influx of new users.
The prediction is based on a report made by Finbold. The report projects that Coinbase will reach 72.8 million verified users before the end of the year. Finbold analyzed the exchange’s user growth rate over three years as a base for the prediction. The prediction also factored in some fundamentals.
Some of the fundamental factors that could push Coinbase’s growth rate include the growing interest in crypto products like ETFs. Exchange-traded funds provide crypto exposure but with less risk.
Secondly, Coinbase’s IPO gave the exchange added exposure and brand recognition. Another factor is that Coinbase earned record-breaking revenue and profit in Q1 2021. In addition, many reputable analysts and institutions have predicted that bitcoin will surge this year. This adds to the positive sentiment around crypto and in turn Coinbase.
Finally, the current crypto market correction could serve as a good entry point for new investors. Especially since analysts are predicting that the current market slump is merely a bearish trend with a bull season.
It’s also worth noting that Coinbase also has a solid reputation as a secure crypto exchange. In fact, Coinbase has never been hacked, unlike some rival exchanges. Making the exchange a good crypto onboarding gateway.
Coinbase began operating in 2012 and reached the one million user mark in 2014. After that, the exchange has grown by leaps and bounds. Also, the exchange started the year (2021) with 56 million users and is expected to gain 16.8 more through the course of the year.