While the value of the cryptocurrency market has declined since the start of 2018, Coinbase, the largest crypto exchange in the U.S., is bucking the trend of the industry it serves. Instead of mirroring the declining prices of digital currencies, the value San Francisco-based wallet and exchange skyrocketed to a shocking $8 billion after its latest funding round.
Coinbase’s Value Skyrockets
Despite the bearish market, Coinbase’s appeal to investors remains undiminished as the exchange just successfully raised $300 million in a recent series E funding round, according to a report by CNBC. But what is even more surprising is the company’s valuation during the round, Coinbase is now an $8 billion juggernaut, a seemingly impossible feat considering that the entire market declined since January this year.
This $8-billion valuation represents a staggering $ 6.4 billion or 400 percent increase in market value in just over a year. During its previous valuation last August 2017, the exchange was only worth $1.6 billion.
Only The Top 3 Cryptos Worth More Than Coinbase
Compared to the various cryptocurrencies being offered by the exchange, only the top three coins have market caps larger than Coinbase’s $8 value, according to TechCrunch. With a market capitalization of $109.9 billion, Bitcoin is still ahead by a wide margin, followed by Ethereum at $20.3 billion and XRP at $17.9 billion. Meanwhile, Bitcoin Cash ($7.3B), ECS ($4.7B) and Stellar ($4.2B) are now valued lower than the San Francisco-based digital currency exchange.
Coinbase previously said that it wants to be the Google of crypto, according to Forbes. Cash from the funding round will be used for its plans for global expansion, adding more cryptos into its roster as well as creating crypto apps.
Tiger Global Management led the Series E round along with other well-known names in financial circles such as Wellington Management, Y Combinator Continuity, Andreessen Horowitz and Polychain.