Crypto exchange Coinbase reported earnings on Thursday, with key financial figures coming in ahead of Wall Street estimates.

Coinbase reported $674.1 million in total revenue for the quarter, surpassing analyst expectations of $650.9 million.

The firm reported $288.6 million in Q3 transaction revenue, and $334.4 million in revenue from services and subscriptions over the same period. Of its subscription and services revenue, income earned on USDC reserves under its arrangement with stablecoin issuer Circle amounted to $172 million.

Meanwhile, the exchange’s trading volume dropped to $76 billion, down from the $92 billion recorded last quarter. Institutional trading volumes came in at $65 billion, while retail trading volume stood at $11 billion.

In its shareholder letter, Coinbase described the period as a “strong quarter” despite the slump in trading volumes and noted that it was on track to deliver a positive adjusted EBITDA in 2023. 

The firm also attributed a decline in overall crypto market cap, and the lowest levels of market volatility since 2016 as some of the reasons behind the decline in transaction revenue.

“This macro backdrop contributed to global spot market trading volumes declining 24% Q/Q in Q3,” said Coinbase.

The firm has $5.5 billion in cash on its balance sheet, which it plans to invest in expanding on chain utility.