Coinbase (COIN) sinks 5% after missing Q2 revenue estimates

Coinbase (COIN) shares fell roughly 5% in after-hours trading Thursday after the crypto platform reported second-quarter results reflecting another weak period for digital asset trading, as lower crypto prices weighed on one of the company’s largest revenue sources.

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The company had revenue of $1.22 billion, versus consensus expectations of $1.29 billion. Transaction revenue came in at $599 million, compared with expectations of $628 million.

Subscription and services revenue totaled $555 million, versus estimates of $599 million, as investors looked for signs that recurring businesses continued to offset weakness in trading activity.

The results came after a difficult quarter for crypto markets. Bitcoin BTC$64,753.25 fell roughly 14% during Q2 while ether lost about 25%, reducing both trading volumes and volatility across spot markets. Analysts had expected a slowdown throughout the industry after activity weakened in April and May, although trading improved modestly in June. Robinhood (HOOD), on Wednesday, reported that its revenue from crypto trading fell 38% year over year to $100 million from $160 million.

Several Wall Street firms lowered estimates ahead of earnings and trimmed EBITDA forecasts as lower crypto prices weighed on institutional trading, blockchain rewards and retail activity.