Event Core: The “honeymoon period” of the cryptocurrency market may be over for the time being. Many mainstream trading platforms, including Coinbase, are facing severe warnings that their first-quarter profits will be significantly squeezed. A number of large investment institutions have preemptively downgraded the ratings of relevant platforms. The core reason is the sharp decline in market trading activities and the general decline in token prices.

Why it matters: This directly points to the "lifeblood" of the exchange - fee income. Trading volume is a barometer of exchange revenue. When the market turns from frenzy to calm, the exchange's financial report data will be the first to "cold". This not only affects the stock price, but may also force the platform to adjust its operating strategy and even affect its investment in new businesses (such as Launchpool and financial management) and user experience.

Impact on retail investors: Decreased market liquidity means that your pending orders may be more difficult to complete and the fluctuations may be weirder. If exchange revenue pressure increases, previously generous activity rewards (such as airdrops and trading rewards) may shrink. At this time, it is more important than ever to control positions and pursue highs cautiously. When trading, don’t forget to go to platforms like CoinRebate to compare prices. The fee rates, activities and hidden costs of each exchange are quite different, so you can save a little bit.

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This article was edited by CoinRebate AI, data source: CoinDesk

Trading volume plummeted! Analysts warn: Binance, Coinbase and other Q1 profits may be hit hard