Does anyone care about crypto? Coinbase’s consumer transaction volume has experienced a 70% decrease compared to the previous year.

Coinbase, ranked as the world’s second-largest cryptocurrency exchange by trading volume, unveiled its earnings report for the second quarter on Thursday. Unfortunately, the findings are far from positive news for those invested in the world of cryptocurrencies.

The transaction activity for both individual consumers and institutional participants has plummeted by 70% and 54% respectively, when juxtaposed with the second quarter of 2022.

This decline has been attributed to multiple factors, including a reduction in the overall market capitalization of cryptocurrencies due to decreasing average crypto prices and limited market volatility. The relatively stable value of Bitcoin since March has resulted in diminished opportunities for substantial profits.

Not long ago, cryptocurrencies and the platforms facilitating their transactions were as widespread in the United States as beer and pickup trucks, epitomized by their prominence during the previous year’s Super Bowl.

However, the trajectory for crypto took a downward turn shortly thereafter, primarily catalyzed by the Federal Reserve’s decision to raise interest rates. The downfall was accentuated by the collapse of significant crypto players such as Three Arrows Capital, Celsius (a lending platform), and Voyager Digital (a brokerage firm). The massive decline in market value during the FTX debacle last year wiped out $2 trillion.

Coinbase’s response to these challenges included laying off a substantial portion of its workforce last summer, which involved blocking access to company email accounts for 1,100 employees in June. The company has continued this trend by executing further staff reductions, slashing an additional 20% of its workforce at the outset of 2023.

Despite some suggestions that the Crypto Winter of 2022 has come to an end, obstacles still persist. In June, both Coinbase and Binance found themselves entangled in legal battles with the US Securities and Exchange Commission, which accused the exchanges of unlawfully offering unregistered securities to their users.

Coinbase has recently sought to have the lawsuit dismissed, but given the ongoing controversies, it appears unlikely that the thawing of the Crypto Winter will be a swift process.