Coinbase Trading Volume Plummets 32.7% to $1.73B, Ranking 26th in Liquidity Amid Regulatory Scrutiny

On August 21, 2025, Coinbase recorded a trading volume of $1.73 billion, a 32.71% decline from the previous day, ranking 26th among stocks in terms of liquidity. The crypto exchange’s shares fell 1.35% during regular trading hours.

Recent developments highlight regulatory scrutiny as a key factor influencing investor sentiment. A proposed SEC rule change could expand oversight of crypto custodians, potentially increasing operational costs for platforms like Coinbase. Additionally, the company announced a partnership with a major European financial institution to enhance institutional-grade custody solutions, signaling efforts to diversify revenue streams amid market uncertainty.

Technical indicators suggest mixed momentum. While short-term traders have shown reduced activity due to volatile macroeconomic signals, long-term holders remain relatively stable. Analysts note that Coinbase’s performance continues to correlate closely with broader crypto market sentiment, particularly Bitcoin price movements and regulatory developments in the U.S.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but was subject to market fluctuations. It performed best in June 2023, with returns of 7.02%, and worst in September 2022, with a return of -4.20%. Overall, the strategy provided modest capital appreciation with significant volatility.