Shares of cryptocurrency marketplace Coinbase Global (COIN 2.31%) fell as much as 7.3% in trading on Tuesday as the crypto market overall sold off. Shares were down 6.2% as of 3:05 p.m. ET.
Major cryptocurrencies are down big today with Bitcoin (BTC 0.91%) and Ethereum (ETH -0.31%) falling nearly 10%, while Solana (SOL -2.36%) was down over 10% for a period of time. Declining cryptocurrencies are generally seen as bad news for Coinbase, but the company really makes its money off volatility, so today's moves may not be all bad.
Day to day, the price of Coinbase will often move with cryptocurrencies, but that's not how investors should think about the business. Coinbase is the biggest crypto marketplace today and has many growth opportunities, like non-fungible tokens (NFTs) to look forward to. Management has been teasing an NFT marketplace, which could be the biggest NFT marketplace in the world shortly after launch with at least 2.6 million people on the waitlist to use the product.
I chalk today's move up to volatility in the crypto market, which is actually beneficial to Coinbase's business. Coinbase makes money on transactions, and given the volatility we have seen in cryptocurrency, this could be a great quarter for the company. As far as the stock goes, I think there's a bright future ahead for Coinbase as more people are onboarded into cryptocurrency and NFTs, and days like today are a buying opportunity for long-term investors.