The Reason Behind Why Coinbase Global Stock Rose Today

Coinbase Global

Coinbase Global (NASDAQ:COIN)

On Wednesday, the rising price of Coinbase stock reflected investors’ optimism that cryptocurrencies and other speculative assets will perform better next year. It’s also because we saw Coinbase Global’s (NASDAQ:COIN) future expansion in areas unrelated to its primary business operations. Today, as of 2:45 p.m. Eastern Time, Coinbase stock has increased by 5%.

Then what?

Today, the Federal Reserve Committee voted to boost interest rates by 0.75 percentage points, providing investors with greater faith that the committee is getting inflation under control. The market appears to agree with the sentiment that this is favorable for speculative investments such as cryptocurrencies, and it would appear that Coinbase stock investors are more optimistic today as a direct result of this than they were the day before.

Coinbase Global’s (NASDAQ:COIN) blog post about Coinbase Cloud was possibly the most important development of the day. Through cloud computing, companies can access cutting-edge technology and software without investing in their underlying infrastructure. And in the realm of cryptocurrencies, this is what Coinbase stock is offering its customers.

One of the cloud solutions that Coinbase offers is Node, which has been available to Web3 organizations for some time now. Nevertheless, it is giving out a free Node edition to developers everywhere. Because of this, more users will be able to use Coinbase Cloud. These software developers also have the option to switch to an enterprise account if their projects are successful and they require additional resources.

What’s Next?

Because it can diversify its revenue away from cryptocurrency transaction fees, Coinbase Global (NASDAQ:COIN) has prioritized the development of its Coinbase Cloud platform. Coinbase’s Other Subscription and Services Revenue section is where the company records the revenue generated by this part of the company’s business. This segment’s revenue for the second quarter of 2022 was $21.8 million, representing a year-over-year increase of 66% and serving as a resounding endorsement of its development. However, considering that it contributed less than 3% of overall revenue, it is clear that Coinbase stock still has a ways to go before reaching its full potential.

Featured Image – Megapixl © Sedovukr 

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About the author: I'm a financial journalist with more than 1.5 years of experience. I worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan. I love to write about marketing and finance. Other than that, I like spending time in the gym and playing PC games.