Coinbase has proven that it can build a large, profitable business by helping both individuals and institutions buy, sell, and stake crypto.
Over the next few weeks, we’ll be curious to see how much volume there is in terms of total trades, as well as the value of those trades driven by Coinbase’s NFT marketplace.
The company has an enormous waitlist and has a simply massive user base to shuttle into its new product. How well that waitlist converts into active users, and then activity, is a critical question. And after the waitlist is chewed through, the fraction of Coinbase that heads over to the NFT product will help us determine volume growth at the company in the immediate future.
So far data is limited, and, frankly, incomplete. So we don’t know much today, but the strength of Coinbase’s start in the NFT game will perhaps give us a vibe for how quickly it may scale volume over the next few quarters, a key period for the company if it wants to regain some of the value it lost over the last few months. Naturally, however, volume is just one part of the trading revenue equation. The other is fees.
How strong do the economics of Coinbase’s NFT push look?
In the long term? Good. In the near term? Weird!