The Coinbase Comeback: Are Retail Investors Getting Ready?

• Coinbase’s app has surged in popularity, jumping from 500th to 395th place in the App Store rankings, suggesting renewed interest among users.
• However, despite this increase, overall retail engagement in cryptocurrency remains low, indicating that it may be premature to assume a full market recovery.

Coinbase, the largest cryptocurrency platform in the U.S. for both retail and institutional investors, has experienced an unexpected resurgence in recent days. The app climbed from the 500th to the 395th position in the overall App Store rankings within just five days, from September 23 to September 28. This significant jump suggests growing interest among users, particularly in a market that has seen fluctuating engagement levels.

💵 $COIN App Rank
📅 27 Sep 8PM

🌐 All Apps
🔼 395
🔄 410 (27 Sep 8AM)

🏦 Finance Apps
🔽 38
🔄 33 (27 Sep 8AM)

— Coinbase App Rank Bot (unofficial) (@COINAppRankBot) September 28, 2024

Performance Against Competitors

The surge in popularity isn’t limited to overall app rankings; within the financial apps category, Coinbase moved from 40th to 38th place during the same timeframe, outperforming competitors in the crypto space. Typically, such spikes in Coinbase’s rankings are viewed as indicators that retail investors are starting to re-engage with the crypto market, potentially signaling the onset of a new bull run. Given that Coinbase is often considered the most user-friendly option for purchasing cryptocurrencies in the U.S., this uptick could signify a pivotal moment for market activity.

Coinbase Premium Indicates Optimism

Recent data from the Coinbase Premium Index also hints at bullish sentiment. This index measures the price divergence between Bitcoin on Coinbase and Binance, and it recently showed a super-rare bullish signal. As user activity spiked, the stock price of Coinbase (COIN) increased by 6.28%, approaching its monthly highs on the NASDAQ exchange. These indicators suggest that there is some momentum building in the market, despite overall retail participation being relatively low.

Retail Interest Still Uncertain

However, it is essential to note that despite these positive signs, retail interest in cryptocurrencies remains subdued. According to Google Trends, interest in crypto-related searches is at its lowest level since November 2023, with a global metric of just 21/100 for “crypto” and a mere 13/100 in the U.S. These figures reflect a stark contrast to the increased activity seen on Coinbase, highlighting that while the app’s popularity is rising, it may not yet translate into broader retail engagement.

Cautious Optimism

While Coinbase’s recent popularity surge in the App Store is an encouraging sign and could be indicative of a potential shift in retail investor sentiment, the overall market dynamics suggest a more cautious approach. As interest in crypto-related searches remains low, it may be too soon to declare that retail investors are fully back in the market. Investors should keep an eye on future trends to gauge whether this increase in Coinbase usage translates into a broader market recovery.