The first quarter earnings report for 2023 will be released by Coinbase, a crypto exchange based in the United States.

FactSet forecasts that Coinbase will show a slight revenue increase of approximately 8% compared to the prior quarter. In January, Coinbase reported revenue of $655 million for Q4 2022. This quarter’s projections are $655 million.

It is also expected that the earnings report will show a loss of 1,45 dollars per share for the quarter. FactSet estimates that the trading volume for the quarter ending March 31 will be $148 millions, up from $146 million in Q4.

Needham analyst John Todaro said in a report that “we estimate Q1 volume remained nearly flat over the quarter. This would be the first time since the crypto bubble unwound, Coinbase’s quarterly volume has not declined.” This gives us hope that retail volumes could have reached a bottom.”

Needham reduced its 2023 year end revenue estimate to $3.44 Billion from $3.66 Billion, citing a “slower recovery than originally projected” and disappointment with volume which “hasn’t risen proportionally to crypto prices”, the report stated.

Since the recent financial crisis, cryptocurrencies have seen a renewed interest. The mistrust of traditional finance has fueled the newfound interest. Bitcoin ( BTC) surpassed $30,000 for the first since June 10, 2020 on April 10. Recently, it was trading at $28,600. This is up 74% from the start of this year.

Investors are particularly interested in Coinbase’s recent unveiling its derivatives exchange, part of the company’s expansion outside of the U.S. This could have a favorable impact on revenue from fees. The initiative comes at a time when regulators are cracking down on crypto firms in the country.

Read more: Editorial – It Looks like the U.S. is Trying to Kill Crypto

Barclays analysts said in a recent note that the non-U.S. market for crypto derivatives is much larger than the U.S. market. While Coinbase’s offshore operations are smaller than those of its U.S. operation, they believe the potential upside is significant.

The report added: “Our research indicates that the crypto activity outside of the U.S. is skewed more towards retail users. This would support the fee rate on these contracts.”

Coinbase’s international exchange allows traders to bet the price of Bitcoin (BTC) or ether (ETH) using perpetual futures contracts. This popular derivatives trading is illegal in the U.S. due to its high risk.

Owen Lau, senior Analyst at Oppenheimer and CoinDesk TV, said that “Perpetual Futures Trading accounts for approximately 75% of the global trading volume.” If they can take market share and expand, that will be an incremental gain.

James Rubin is the editor.