Coinbase, a cryptocurrency exchange that operates in the United States, has disclosed that its revenue for the fourth quarter of 2022 has above projections. This comes despite the fact that the exchange’s transaction volume has been steadily declining over the last several months.

The exchange reported a net revenue for the quarter of $605 million, which was much more than the revenue prediction of $589 million that was supposedly provided by Wall Street industry professionals.

Coinbase reported a 12% decrease in transaction volumes in comparison to the preceding quarter. Despite this, the business credited its 5% improvement in total revenues for the period to a 34% increase in subscription and service fee income.

In spite of Coinbase’s repeated assertions that the business does not consider its staking products to be securities, staking revenue for the company has reduced when compared to the prior quarter. This is due to the fact that the fall in the value of cryptocurrencies has been bigger than the overall growth in the amounts of staked bitcoin.

An inquiry of the exchange’s staking products is now being carried on by the United States Securities and Exchange Commission. This inquiry is quite similar to the one that led to its rival, the cryptocurrency exchange Kraken, reaching a settlement with the regulator for the amount of $30 million. Specifically, this investigation is looking into whether or not Kraken engaged in any illegal activity.

According to Coinbase, 2022 was a “tough year for crypto markets,” with the industry facing substantial headwinds due to both macroeconomic developments and incidents such as the bankruptcy of crypto hedge fund Three Arrows Capital and exchanges Voyager and Celsius. Coinbase attributed these headwinds to the fact that the sector was operating in a highly competitive environment.