WonderFi surpasses $1 billion in assets amid crypto price upswing

• WonderFi Technologies (TSX:WNDR) has amassed more than C$1 billion in combined client cash and digital assets under custody as crypto prices enjoy a pronounced rebound
• Total active users increased by 16 per cent from October to November, with a 54 per cent jump in total trading volume compared to the average in Q3
• WonderFi Technologies owns and operates Canadian digital asset businesses
• WonderFi Technologies stock (TSX:WNDR) has returned more than 20 per cent year-over-year, but remains down by about 67 per cent since 2018

WonderFi Technologies (TSX:WNDR) has amassed more than C$1 billion in combined client cash and digital assets under custody as crypto prices enjoy a pronounced rebound.

The assets are split between Bitbuy Technologies and Coinsquare Capital Markets, WonderFi’s wholly owned crypto trading platforms.

The company views the milestone as a product of “new user growth, increased user activity and price appreciation in the digital asset sector,” according to Wednesday’s news release.

The platforms saw a combined 16 per cent increase in monthly active users in November compared to the month prior. They also posted a 54 per cent increase in total trading volume for the month compared to the monthly average in Q3.

“After completing the third quarter with combined client assets under custody of C$695 million, we are encouraged by improving industry conditions and increased activity across the Bitbuy and Coinsquare platforms,” Dean Skurka, president and chief executive officer of WonderFi, said in a statement. “As two of Canada’s largest and most trusted cryptocurrency exchanges, Bitbuy and Coinsquare continue to be the preferred partners for Canadians looking to access and purchase digital assets in a safe and secure way.”

Cryptocurrencies are on the rise

WonderFi’s jump in trading activity coincides with a bullish run in crypto prices, highlighted by Bitcoin’s more than 150 per cent gain and Ethereum’s more than 76 per cent gain, both year-over-year. Key drivers behind the generalized upswing include:

• A perceived increase in investor safety after fraud charges against Sam Bankman-Fried, the disgraced founder of crypto exchange FTX, and criminal charges against Changpeng Zhao, the founder of the Binance exchange, for inadequate anti-money laundering enforcement and the willful violation of U.S. economic sanctions
• Growing signs that U.S. regulators will approve numerous spot Bitcoin exchange traded funds (ETFs) as early as January, creating a precedent for ETFs focused on other popular crypto assets, potentially ushering billions of new dollars into the space
• A sense that the U.S. Federal Reserve and the Bank of Canada will soon begin to cut their benchmark interest rates in line with receding inflation, which has encouraged investors to re-allocate into higher-risk assets like crypto, though high-yielding bonds and cash remain a top priority for Canadians

Investors interested in crypto can learn more by reading about Stockhouse’s top 5 cryptocurrencies to buy in 2023.

WonderFi Technologies owns and operates Canadian digital asset businesses, including Bitbuy and Coinsquare, two crypto trading platforms, and SmartPay, a crypto payments processing platform. The company boasts more than 1.6 million registered Canadian users.

WonderFi Technologies stock (TSX:WNDR) is unchanged trading at C$0.205 per share as of 9:46 am ET. The stock has returned more than 20 per cent year-over-year, but remains down by about 67 per cent since 2018.

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