Nasdaq-listed cryptocurrency exchange Coinbase has revealed in its Q1 2023 shareholder letter its dedication to modernizing the financial system. The firm reported net revenue growth of 22% in the first quarter and a 24% decrease in total operating expenses.

Fintech firm Block, headed by former Twitter CEO Jack Dorsey, has reported a $2.116 billion Bitcoin revenue from its flagship product, the Cash app, in the first quarter of the year. The firm’s BTC revenue was up 18% from $1.83 billion in Q4 2022.

Bitcoin’s dominance, which measures the cryptocurrency’s share in the broader market, has experienced a sharp increase amid the ongoing instability in the U.S. banking sector. Since early March, the dominance rate has surged from 42% to nearly 49%, a 22-month high.

Top stories in the Crypto Roundup today:

• Coinbase Shrinks Losses and Boosts Revenue in Q1
• Block Reports $2.1 Billion Bitcoin Revenue from Cash App in First Quarter
• Bitcoin Dominance Hits 22-Month High Amid U.S. Banking Crisis
• Crypto Market Movers – RNDR, CTSI, INJ

Coinbase Shrinks Losses and Boosts Revenue in Q1 2023

Nasdaq-listed cryptocurrency exchange Coinbase has revealed in its Q1 2023 shareholder letter its dedication to modernizing the financial system. The firm reported net revenue growth of 22% in the first quarter and a 24% decrease in total operating expenses.

Coinbase’s first-quarter results came with a net loss of $79 million, marking its fifth consecutive quarter of losses, however, this is substantially lower than the $430 million it lost in the same period last year. The exchange reported a return to positive Adjusted EBITDA of $284 million, and following the release, its stock rose over 8% in after-hours trading.

According to its quarterly results, Coinbase’s net loss per share amounted to $0.34 with results that surpassed analysts' expectations, which predicted losses of $316 million or $1.45 per share.

Coinbase's total revenue for the quarter was $772.5 million, a 37% decrease from the $1.1 billion in revenue generated in Q1 2022. However, total operating expenses came in under $900 million, resulting in an operating loss of $124 million, according to the report. Its losses were partly limited by a 20% workforce reduction in January.

Coinbase has concentrated its efforts on enhancing operational efficiency, risk management, product innovation, and regulatory clarity to strengthen its position in the market. These efforts come as the exchange received a Wells Notice from the U.S. Securities and Exchange Commission (SEC)

Block Reports $2.1 Billion Bitcoin Revenue from Cash App in First Quarter

Fintech firm Block, headed by former Twitter CEO Jack Dorsey, has reported a $2.116 billion Bitcoin revenue from its flagship product, the Cash app, in the first quarter of the year. The firm’s BTC revenue was up 18% from $1.83 billion in Q4 2022.

Cash App's total profits reached over $931 million in the first quarter of 2023, a 49% year-over-year increase. In comparison, Block's gross profit amounted to $1.71 billion.

The shareholder letter attributes the multi-billion-dollar Bitcoin revenues to "an increase in the quantity of Bitcoin sold to customers," which were "partially offset" by a decrease in the market price of Bitcoin compared to the same period in 2022.

The fintech firm reported earnings per share of 40 cents, surpassing analyst expectations of 35 cents per share by 14%, and a first-quarter revenue increase of 26% year-on-year.

Bitcoin Dominance Hits 22-Month High Amid U.S. Banking Crisis

Bitcoin’s dominance, which measures the cryptocurrency’s share in the broader market, has experienced a sharp increase amid the ongoing instability in the U.S. banking sector. Since early March, the dominance rate has surged from 42% to nearly 49%, a 22-month high.

Over the same period, the SPDR S&P regional banking exchange-traded fund (ETF), which aims to replicate the performance of an index derived from regional U.S. banks, has plummeted by 35%.

The banking crisis worsened in March as three U.S. banks – Silicon Valley Bank (SVB), Signature Bank (SBNY), and Silvergate Bank (SI) – collapsed, raising fears of a systemic meltdown. First Republic Bank (FRCB) joined the list of failed banks, while PacWest Bancorp (PACW), a lender based in Los Angeles, saw its shares plunge by more than 60% on Wednesday.

Nevertheless, U.S. Federal Reserve Chairman Jerome Powell has maintained that the banking sector is "sound and resilient." The banking sector’s instability and banking stocks’ drop is driving Bitcoin’s market share higher, reflecting its growing appeal as a safeguard against the U.S. dollar’s erosion, comparable to gold and oil, Lewis Harland, portfolio manager at Decentral Park Capital, said.

With the dominance rate currently standing at 48.5%, having recently peaked at 48.9%, Harland believes that a breakout would signify continued BTC outperformance as BTC’s dominance is “looking to break its three-year oscillation pattern.”

Crypto Market Movers – RNDR, CTSI, INJ

Several tokens are leading the charge in the last 7-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Injective (INJ) - Injective, a blockchain specifically designed for finance, offers developers a wide range of robust out-of-the-box modules, including a completely decentralized orderbook. This orderbook can be used to build sophisticated applications. Additionally, Injective is an open and interoperable smart contracts platform.

Cartesi (CTSI) - Cartesi provides a Linux runtime environment for scalable blockchain Dapps. Complex and intensive computations run off-chain while retaining the security guarantees of the blockchain.

Render token (RNDR) - The Render Network is designed to connect users looking to perform render jobs with people who have idle GPUs to process the renders. Owners would connect their GPUs to the Render Network in order to receive and complete rendering jobs using OctaneRender.

 

State of the Crypto by Top Tier Exchange Volume

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