Two days after the beta release of NFT Market NEW Coinbase’s share price dropped to an all-time low during Friday’s trading session.
The company announced plans to enter the NFT area last October. And with more than 1.5 million registered waitlists, the beta launch kicked off on April 20.
Meanwhile, Coinbase shares have been falling steadily since the beginning of the month.Information from Yahoo! Finance And this week’s beta release hasn’t changed its trajectory in any way. On Friday, $COIN hit a low of $131.25 and subsequently closed at $131.52.
with the release of the beta version Only some customers can buy and sell Ethereum-based NFTs by making payments in ETH, with the company planning to integrate other blockchains in the future and add some unique features to help users get more engaged.
John Todaro, senior research analyst at Needham & Company, said the real question is whether the NFT market will be successful. “Right now, investors are looking at ‘Can you really scalable, make volume, and can it really compete with Open Sea? And is it really going to increase revenue compared to just being launched and possibly disappearing?”
Coinbase is facing competition not only from OpenSea and LooksRare, which dominate the market right now. But it also includes major crypto exchanges such as FTX.US and Binance, which launched the NFT market last year.
inThe report published in February. JMP Group similarly stated that Coinbase could benefit from the NFT market over the long term.
“The company is investing in areas that may not have an immediate impact. But it will play a crucial role in long-term income. This includes the upcoming NFT platform,” the report said.
Jeff Dorman, co-founder and chief investment officer of crypto asset management firm Arca, said it was too early for Coinbase’s NFT market to prove valuable to investors.
“Since NFT as a whole is not yet widely accepted or accepted by TradFi, We believe you will have to see some real traction in the coming quarters before any stock analyst credits Coinbase.”
Todaro said Coinbase’s stock performance over the past few months has also reflected broad market trends. He pointed out that interest rates affect tech stocks in general. And in particular, retail crypto investors and trading volumes are declining.