Coinbase App Download Rate Falls Due to Price Volatility
Coinbase, the San Francisco based cryptocurrency exchange download rates have plummeted to the lowest among the top US financial applications. This is a direct result of the high volatility cryptocurrency prices, especially bitcoin.
When cryptocurrency prices fall, it makes it more affordable for a larger number of people to invest in these currencies, and investments may rise. However, recently, the prices of cryptocurrency have been highly unstable, therefore preventing people from investing in them.
Coinbase is one of the most popular platforms for bitcoin trading. According to reports, in June the Coinbase app fell to rank 40, which is its lowest since April 2017. This has been attributed to a certain extent to the fickleness of retail traders who form a large portion of cryptocurrency trading. However, it is to be noted that even though Coinbase has millions of users, it is a one-time download thing, just like with other apps. So unless new cryptocurrency users download the app, the rankings are bound to fall, especially in today’s crypto market situation. Also, customers can use the Coinbase website for trading, and therefore some may not be downloading the app because of the availability of a website.
However, despite this fall in downloads, Coinbase and other cryptocurrency exchanges are doing relatively well. According to Quartz, Coinbase has a valuation of $8 billion, which is an increase from last year’s 1.6 billion. The company also generated more than $1 billion in revenue last year.
Coinbase co-founder and CEO Brian Armstrong tweeted that they are not worried about short-term prices and negative press and said that negative press helps the market get rid of players who are there for the wrong reasons.
For the app to regain popularity, it does largely depend on the stability of Bitcoin’s price. However, it is a short-term price change effect and whether it will have a huge impact on Coinbase or not is uncertain at this stage. It may just be another minute problem or work as an indicator of the future.
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