Coinbase, a cryptocurrency exchange operating in the United States, has revealed that its revenue for the fourth quarter of 2022 is above projections. This comes despite the fact that the exchange’s trading volume has been steadily declining over the past few months.

The exchange reported net income for the quarter of $605 million, which was far more than the $589 million revenue prediction reportedly provided by Wall Street industry professionals.

Coinbase reported a 12% decrease in transaction volumes compared to the previous quarter. Despite this, the company attributed its 5% improvement in total revenue for the period to a 34% increase in revenue from subscriptions and service fees.

Despite Coinbase’s repeated assertions that the firm does not consider its staking products to be securities, the firm’s staking revenue is down compared to the previous quarter. This is due to the fact that the drop in the value of cryptocurrencies has been greater than the overall growth in the amount of bitcoin staked.

The United States Securities and Exchange Commission is conducting an investigation of the stock’s participation products. This inquiry is quite similar to the one that led rival cryptocurrency exchange Kraken to reach a $30 million settlement with the regulator. Specifically, this investigation is looking into whether or not Kraken was involved in any illegal activity.

According to Coinbase, 2022 was a “difficult year for crypto markets,” as the industry faced significant headwinds due to both macroeconomic developments and incidents such as the bankruptcy of cryptocurrency hedge fund Three Arrows Capital and the Voyager and Celsius exchanges. . Coinbase attributed these obstacles to the fact that the sector operated in a highly competitive environment.