Coinbase's stock price drops due to low crypto trading volume in the third quarter.

The cryptocurrency market's muted trading weighed down Wednesday's third-quarter results, which were weaker than expected.

The stock fell more than 4% in extended trading.

According to a survey of analysts by LSEG, the company's third-quarter results differed from Wall Street's expectations.

• Earnings per share: 28 cents vs. 41 cents expected
• Revenue: $1.21 billion vs. $1.26 billion expected

Coinbase, the largest U.S. marketplace for cryptocurrencies, reported a net income of $75.5 million or 28 cents per share, a significant improvement from the year-ago loss of $2.3 million or 1 cent per share.

Coinbase's crypto investment portfolio resulted in $121 million in pretax losses in the latest quarter, with the majority of the losses being unrealized due to lower crypto prices on Sept. 30 compared with June 30.

The company's revenue from retail trading increased by 98% to $483.3 million from the previous year, while institutional revenue grew by 292% to $55.3 million during the quarter compared to the same period a year ago. The total transaction revenue was $572.5 million, representing a 98% increase year-over-year.

The revenue generated by Coinbase's subscription and services, which includes stablecoins, staking, and leverage for Prime traders, experienced a slight decrease of 7% to $556.1 million.

The cryptocurrency market has been experiencing a downturn for most of the year, with Bitcoin trading within a limited range of $55,000 to $70,000. Bitcoin has not experienced any substantial growth due to a lack of catalysts, and its volatility has been low as investors closely watched the U.S. presidential race and remained cautious. Coinbase has been actively advocating for the crypto industry this year, investing heavily in pro-crypto political action committees.

This is a breaking news story. Check back for updates.