Nobody wants cryptocurrencies. The Bitcoin craze is over
According to the latest report from cryptocurrency exchange Coinbase, the number of transactions has decreased by 70% over the year. Responsible for the market crisis numerous allegations against the largest token exchange platforms.
Coinbase, the world’s second-largest cryptocurrency exchange by volume, released its second-quarter earnings report on Thursday. The results are not favorable for cryptocurrency enthusiasts. Transaction volumes for consumers and institutions fell by 70% and 70%, respectively. and 54 percent compared to the second quarter of 2022.
Market crisis
The exchange cited a decrease in the overall market capitalization of cryptocurrencies as the reason for the decline, with a decrease in average cryptocurrency prices and low market volatility. The price of the most prominent cryptocurrency, Bitcoin, has remained relatively stable since March, meaning the chance of big returns has diminished.
The downward spiral of cryptocurrencies began shortly after the Fed raised interest rates. Three crypto giants – hedge fund Three Arrows Capital, lender Celsius and broker Voyager Digital – have collapsed, and late last year the high-profile implosion of FTX ended up losing nearly $2 trillion in market value.
Layoffs in the largest companies
Due to numerous lawsuits and a drop in transaction value, one of the largest players in the market, Binance, recently laid off about 1,000 jobs. employees. Coinbase began layoffs last summer, shedding 1,100 people in June, and continued the cuts this year, downsizing its team by another 20 percent.
While some have claimed that Crypto Winter 2022 is finally over, obstacles remain. In June, both Coinbase and Binance were hit by lawsuits from the U.S. Securities and Exchange Commission. The regulator accuses both exchanges of illegally offering unregistered securities to users.
