Coinbase reveals customer data, providing insight into purchasing and trading behavior

In a blog post released yesterday Coinbase released customer behavior research showing customers’ cryptocurrency trading preferences and purchase decisions. Coinbase data shows that while Bitcoin dominance has increased since the crash of the 2017-2018 bull market, Bitcoin’s trading volume has not risen similarly. Coinbase customers show a preference to move into other assets.

The insight is further supported by customers purchasing behaviors, which show that among customers with at least 5 purchases, 60% start with Bitcoin but just 24% stick exclusively to Bitcoin. In total, over 75% eventually buy other assets.

Bitcoin is by far the leading cryptoassets, but Coinbase customers’ preference to branch into other assets shows that new users generally begin to look for alternative assets and use-cases, after on-boarding through Bitcoin.

“In this sense, Bitcoin is also top of the funnel for broader crypto growth.”

Why it matters:

• Exchanges have unparalleled insight into cryptoasset purchasing behaviors. The data provides a great window into how retail navigates through the world of crypto.
• Institutions are unlikely to follow this behavior in the short run given limited access to most cryptoassets through institutional venues; however, this behavior could be informative as the industry’s institutional infrastructure continues to mature.