Coinbase Q4 Retail Activity Boosted by October Shiba Inu Rally: Is Robinhood Missing?
Coinbase Global, Inc. PIECE OF MONEY fourth-quarter results may have benefited from strong retail trading volume, according to a Needham analyst.
SHIB Boost for Coinbase: Ahead of Coinbase quarterly results, Needham analyst John Todaro raised its fourth-quarter revenue and profit estimates for the cryptocurrency exchange, citing higher trading volumes.
October 2021 was a solid month of strong retail activity, powered by the Shiba Inu SHIB/USD rally, the analyst said. Shiba Inu hit an all-time high of $0.000088 on October 28 before selling off the crypto market dragged it lower.
SHIB’s rally, Todaro said, helped the Coinbase app reach the number 2 ranking in downloads for the week ending October 15, 2021.
“This only happened one other time in 2021 when the Coinbase app reached this ranking in Q2 2021, the current highest volume for Coinbase,” the analyst said in the note.
Todaro, however, withdrew its retail trading fee estimates, given reduced volatility in November and December that point to weaker retail activity for both months, he said.
Related Link: Robinhood CEO Explains Why He’s Resisting Calls to Accept Shiba Inu
Is Robinhood missing the mark? Trading app Robinhood Markets, Inc. HOOD Last week, disappointing quarterly results failed to boost the already falling stock.
The trading app missed expectations and issued a lackluster Q1 forecast as the crypto and meme craze waned.
Shib’s Loyal Army vehemently demanded that Robinhood list the same coin, though the trading app showed reluctance to add more coins, citing a lack of clarity on the regulatory front.
Robinhood currently allows seven cryptos to be exchanged – Bitcoin BTC/USD, bitcoin money BCH/USD, S.V. Bitcoin BSV/EUR, Dogecoin DOGE/USD, Ethereum ETH/USD, Classic Ethereum ETC/USD and Litecoin LTC/USD.
Coinbase Rating: Needham reiterated a buy rating and price target of $420 on Coinbase shares.
When last checked, Coinbase shares were up 4.53% at $198.74.
Read now: Coinbase has 73 million users worldwide
Photo: Courtesy of Crypto Dost on Flickr