Coinbase Now Holds 11% Of Entire Crypto Industry’s Market Cap In Custody

Coinbase Custody Offers Staking for Solana alongside Bison Trails
Coinbase Custody Offers Staking for Solana alongside Bison Trails

Messari stands as a notable crypto data aggregator. Recently, the firm has reported an interesting metric that makes it clear that Coinbase, the crypto exchange heavyweight for the US, saw its crypto custody services surge in use within 2020’s last quarter.

Coinbase Showing Custodian Supremacy

Messari Crypto revealed that Coinbase’s custody service managed to attain 11% of the entire crypto industry’s market cap within its custody by the end of last year. Coinbase itself offers custody services for a wide array of assets. Amusingly enough, only around half of the 90 coins offered within the crypto custody services are tradable within Coinbase’s exchange.

In 2020’s fourth quarter, the value of these assets held in custody at Coinbase saw a spectacular rise in value, going up to around $90 billion in total. By 2021, the combined crypto capitalization for the market at large more than doubled, skyrocketing to $780 billion.

BTC And ETH Still Running Supreme

An amusing fact about this massive market cap custody it has, Coinbase’s selection of 90 cryptocurrencies failed to stop Bitcoin and Ethereum to be major constituents of its assets under custody. 83% of all cryptocurrencies held by Coinbase are in either one of those two assets.

Bitcoin, as one would expect, has always represented most of the two major cryptocurrencies. For 2020, and the year prior, it constituted 70% of the value within Coinbase’s custody services.  Over that same period,  Ethereum saw its share of the custody increase from 9% to 13%.

All of these findings were published by way of a report. This report examined the highly-anticipated public listing of Coinbase, and was compiled by Mira Christanto.

In Christanto’s report, it’s revealed that retail clients represent a whopping 95% of Coinbase’s trading revenue. These retail clients pay 30 times more than what an institutional client would pay. Another thing Christanto made note of, was that the 7% of the total crypto market cap, would equate to $107 billion. This is because the market cap of the crypto space decided to skyrocket as well, going up to $1.54 trillion.

Coinbase Gearing For Listing

On the 25th of February, 2021, Coinbase filed an S-1 report to the Securities and Exchange Commission (SEC). According to this report, the exchange’s direct revenue for 2020 was valued at $1.1 billion, with most of it coming from trading fees.

Climbing on the major crazes happening recently, Coinbase revealed to the public on the 25th of February, 2021, that a major part of its corporate treasury consists of various cryptocurrencies, primarily Bitcoin. This follows after the likes of Tesla and Microstrategy started a new crazy as they announced their respective crypto holdings.

Remember, all trading carries risk. Past performance is no guarantee of future results.

A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.