United States-based cryptocurrency exchange Coinbase has beaten revenue expectations for the fourth quarter of 2022 but continues to see a loss in its transaction volume.
Net income for the exchange came in at $605 million for the quarter, beating the $589 million revenue reported by Wall Street analysts.
Transaction volume was down 12% compared to the previous quarter, but Coinbase pointed to a 34% increase in subscription and service revenue as the reason for its 5% total revenue growth for the quarter.
Our Q4 and FY’22 financial results are in.
The letter to shareholders can be found on the Investor Relations website at https://t.co/8ovHEtPRgf
— Coinbase (@coinbase) February 21, 2023
While Coinbase expressed its belief that staking products are not securities, staking profits fell compared to the previous quarter as the fall in crypto prices outpaced the increase in staked balances across all crypto tokens.
related: US regulatory crackdown leads to $32M digital asset influx: CoinShares
The exchange is currently facing an investigation by the Securities and Exchange Commission (SEC) about staking products, similar to the one that led to peer crypto exchange Kraken settling with the regulator for $30 million.
Coinbase notes that 2022 is a “challenging year for the crypto market,” with macro-economic events and events such as the bankruptcy of crypto hedge fund Three Arrows Capital and the Voyager and Celsius exchanges causing major headwinds for the industry.