With nearly 3 million monthly active users and over 40 million verified users, Coinbase has undoubtedly witnessed a period of tremendous growth and innovation since its launch back in 2012.
So much so that the custody wing of the US-headquartered crypto exchange reportedly accounted for 11% of the entire cryptocurrency market capitalization at the end of 2020. This also means that approximately a whopping amount of $90 billion worth of assets are currently being held with Coinbase custody.
This was revealed by the popular crypto-analytics platform, Messari in its latest report.
Coinbase Custody Figures Poised Even During Market Downturn
As noted in the above chart it can be observed that the value of assets custodied with Coinbase has been on a rise since the first quarter of the year.
Despite the damaging consequences and the market-wide repercussions of Black Thursday in March 2020, the figures remained unfazed and continued the uptrend.
However, it was not until the last quarter of the year which saw an astonishing rise in terms of the quantity of crypto-assets stored in custody on the platform. This can be attributed to the growing interest from retail and institutional investors.
It also found that Bitcoin [BTC] and Ether [ETH] made up for 83% of assets on the platform.
Moreover, Bitcoin alone accounted for nearly 70% of the total crypto-assets within Coinbase’s custody services in 2020, a figure that remained consistent even in the last quarter of 2019.
Ethereum holdings, on the other hand, rose from 9% in 2019 to 13% the next year.
Other crypto-assets on Coinbase represented 13% in 2020, with a decline of 2% from the previous year.
The exchange giant saw a substantial rise in the custody of digital assets during the last quarter of 2020 which was accompanied by the rising prices of Bitcoin and other crypto-assets and the first phase of the 2020 bull run.
Besides, Messari’s report also revealed that the retail clients on the platform represented a staunching 95% of its trading revenue. This class of clients reportedly paid 30x more than the institutional cohort.
The latest development comes a week after Coinbase filed an S-1 report with the United States Securities and Exchange Commission [SEC], according to which the exchange’s direct revenue for 2020 was found to be at $1.1 billion.