Coinbase (NASDAQ:COIN) fell more than 2% Wednesday after Piper Sandler downgraded the stock and said that, despite the recent market rally following the SEC’s lawsuit against Coinbase, the increase in crypto prices haven’t translated to an increase in trading volume. The firm also expects Coinbase to report its lowest trading volumes and monthly transacting users in over two years for the third quarter.
"The recent case brought forth by the Securities and Exchange Commission , as well as the continued lack of regulatory clarity in the US, has created too much uncertainty to prudently project revenues in future years," analyst Patrick Moley wrote in a note.
COIN is up some 138% since the start of the year, thanks to rising crypto prices and renewed interest in among Wall Street giants.
"However, rising crypto prices have not translated to increased trading volumes for COIN in recent quarters and the timing of a spot bitcoin ETF approval is anyone’s guess," Moley said, calling for the company to post the lowest quarterly trading volumes and monthly transacting users totals in over two years in Q2.
The Neutral rate agrees with the SA Quant system rating and the average sell-side analyst rating, both at Hold.
Coinbase took it on the chin $2.31, or 2.9%, Wednesday to $77.62.
