Could Coinbase’s New Web 3.0 Initiatives Help The Exchange Get Out Of Its Slump

The world is fast approaching what is quickly becoming known as the Web 3.0 era, which has since led to numerous businesses and companies across a variety of fields scrambling to implement new software and features which can help facilitate their customers with the eventual transition. One name in particular is looking to get a headstart on the whole thing, namely Coinbase.

Coinbase announces new Web 3.0 features

In May, Coinbase steadily extended its product offerings as certain handpicked users were given permission to access DeFi and other Ethereum-based decentralized applications (dApps) via the Coinbase app. As such, America&39s biggest cryptocurrency exchange has made some Web 3.0 application capabilities available, including a hot wallet and a new browser, to a small focus group of its mobile app customers.

These users shall reportedly be able to access dApps on the Ethereum network, such as OpenSea and Uniswap, through the exchange&rsquos official app. Being able to borrow and lend funds, use NFT marketplaces, DEXs, and DeFi lending protocols are among the new features added by Coinbase.

Moreover, a co-custodial solution will be used for the Coinbase hot wallet. This implies that the exchange shall be responsible for storing the private key for the wallet, which the corresponding user can also keep. Additionally, the wallet and dApp capabilities are powered by MPC (Multi-Party Computation) technology, which protects senders&39 and recipients&39 privacy while maintaining transaction accuracy.

A new era, a new Coinbase?

Although the exchange has had its fair share of issues in the past, Coinbase is nevertheless taking certain steps to ensure that it can keep up with the aforementioned global transition to Web 3.0. Coinbase&39s improved wallet capability therefore bodes well for Web 3.0 developers who may struggle to enroll new customers to showcase their work. As per Statista, the exchange has around 90 million registered users as of this time.

Nevertheless, according to Coinbase&39s Q1 financial report, the exchange is struggling amid the ongoing bear market, having posted its first net loss since going public in 2021. Since last year, the exchange&39s revenue has also plummeted to $1.1 billion from $1.6 billion year on year, and monthly users have similarly declined from over 11 million to just above 9 million since the final quarter of the previous year as well.

Still, Coinbase remains hopeful that things will improve via the new Web 3.0 functionalities and as the market eventually stabilizes, however only time will tell if this turns out to be the case.