The company's results

Coinbase (NASDAQ: COIN) quarterly report showed a drop on users, trading volumes and market share. The crypto-exchange is clearly in crisis. Coinbase gave a pessimistic outlook, despite its partnership with BlackRock.

The second quarter of 2022 was the worst quarter in history and another test of strength for Coinbase and the crypto industry as a whole.

It is worth noting that cryptocurrency prices fell as the world's economic macro environment deteriorated significantly, reducing demand for risky assets.

The entire sector was hit hard in November after firms such as Celsius Network LLC and Voyager Digital Holdings filed for bankruptcy protection. More than 20 smaller exchanges closed. Earlier this week, two other publicly traded cryptocurrency companies, Galaxy Digital Holdings and Marathon Digital Holdings, reported larger losses than a year ago.

The problems worsened in early May when a so-called stabelcoin called TerraUSD and its sister cryptocurrency Luna collapsed.

Coinbase shares have lost 65.3 per cent since the start of the year, stronger than the average market decline. The S&P 500 index has fallen 13.7% since the start of 2022.

Many on Wall Street are lowering their forecasts for Coinbase stock today. This week analysts downgraded them to 'outperform' and a target price of $100 a share after experts downgraded them to 'neutral and $54 last month.

Report from Coinbase

Loss per share rose to $4.98, worse than analysts' forecast of $2.47.

Coinbase reported a 64% drop in revenues to $808 million, below analysts' average estimate of $874 million.

Monthly transactional users fell to 9mln in the Q2, down 2% from the previous quarter.

Trading volume also fell short of estimates, with total assets on the platform falling 63% to $96bln.

Operating expenses of $1.9bln were up 8% from the first quarter.

Moreover, as noted, the company is also facing increased competition, which could force it to cut fees, especially for retail investors. Just on Tuesday, Interactive Brokers said it was expanding its cryptocurrency trading offerings. Binance.US cut fees for some crypto transactions to zero in June.