Why Coinbase Stock Is Climbing Again Today
Shares of cryptocurrency exchange Coinbase Global (NASDAQ: COIN) hit an all-time high at more than $400 per share the first day the company was public. The stock fell shortly thereafter and hasn't done much since. However, shares are up roughly 10% over the past week and 3.6% higher today as of 10:45 a.m. EDT, as it's becoming more apparent that trading volume for cryptocurrencies is holding strong.
As my Motley Fool colleague Rick Munarriz so eloquently said, "Coinbase is a bet on crypto trading -- and not necessarily its ascent." In other words, Coinbase generates most of its highly profitable revenue from trading volume. It doesn't necessarily matter if the prices of cryptocurrencies go up or down as long as its 68 million verified users are buying and selling.
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Source Fool.com
