Coinbase custodies 11% of entire crypto capitalization


The crypto data aggregator Messari has reported that the amount of crypto assets held by the US stock exchange giant Coinbase rose sharply in the last quarter of 2020.

Messari Crypto has revealed that up to 11% of total crypto market capitalization was held with Coinbase custody at the end of last year. Coinbase offers custody services for over 90 crypto assets, about half of which can be traded on Coinbase’s exchange.

The value of assets held with Coinbase rose to around $ 90 billion in the fourth quarter of 2020 as combined cryptocapitalization more than doubled to $ 780 billion by 2021.

Coinbase stores 11% of all crypto assets

– Messari (@MessariCrypto) March 1, 2021

Despite the multitude of assets backed by Coinbase Custody, Messari found that Bitcoin and Ethereum account for 83% of the cryptocurrency held with Coinbase.

While Bitcoin consistently accounted for 70% of the assets managed with Coinbase in 2019 and 2020, Ethereum rose from 9% to 13% over the same period.

The results were published in a report examining Coinbase’s expected public listing compiled by Messari researcher Mira Christanto.

Christanto reported that 95% of Coinbase trading revenue comes from retail clients who pay 30 times more than institutional clients. It also noted a pre-IPO valuation of 7% of total crypto market cap, which based on the sector’s current market cap of $ 1.54 trillion, would equal around $ 107 billion.

According to the S-1 report that Coinbase filed with the Securities and Exchange Commission on February 25, the exchange had direct revenue of $ 1.1 billion in 2020, mainly from trading fees.

In a February 25 blog post to its clients, Coinbase revealed that Bitcoin and other crypto assets have been a huge part of the company’s coffers since the company was founded in 2012.