Coinbase, the world's second-largest cryptocurrency exchange by volume, has recorded a decline in consumer transactions, signaling challenges for the exchange. Regulatory scrutiny and market factors are contributing to this trend. In its second-quarter earnings report, Coinbase revealed significant decreases in transaction volumes for both consumers and institutions, with a 70% and 54% decline, respectively, compared to the same period in the previous year.

Analysts attribute this performance to various factors, including the overall decrease in cryptocurrency market capitalization. The prevailing bearish sentiment has resulted in falling average crypto prices, raising concerns about the potential for significant returns.