Coinbase has disclosed significant trading activities involving ether (ETH), selling 12,652 units and achieving around $25 million in transaction volume in the last quarter. The report highlights that ETH is examined for both investment and operational functions, with recent prices noted to be roughly double those from earlier evaluations.
What Were the Trading Trends Last Quarter?
Analyst Geoffrey Kendrick reviewed Coinbase’s findings and noted that the third quarter experienced net purchases at lower average prices of approximately $2,500. In contrast, the fourth quarter shifted to net sales as prices escalated to around $4,000.
How Does Coinbase Use Its ETH Holdings?
Coinbase has emphasized that it primarily retains ETH for long-term investment and operational needs. Revenue from ETH is generated through transaction fees linked to its Ethereum Layer-2 infrastructure, known as Base.
- Net ETH sales totaled 1,558 units over three quarters, executed through strategic trading.
- Coinbase plans a 20% increase in its ETH holdings in 2024.
- The assets held for investment purposes are distinct from regular trading activities.
Furthermore, a representative from the Base team refuted any speculations regarding ETH accumulation, asserting that the amount held surpasses what Base has acquired, totaling over $300 million worth. Coinbase’s trading strategies are framed by market adaptation and risk management, offering insights into its dual use of ETH for investment and operational objectives.
