Ethereum (ETH) has fallen 6.6% in the last 24 hours, trading around $1,947, as broader crypto markets continue to navigate volatility and macroeconomic headwinds.
Yet amidst the price turbulence, Coinbase CEO Brian Armstrong is pointing to a surprising source of optimism: retail investor resilience.
Sponsored
Retail “Diamond Hands” Hold Strong Despite Ethereum’s 7% Drop
Armstrong highlighted that, beyond weathering the market downturn, Coinbase’s retail users are actively buying the dip, resulting in net increases in BTC and ETH holdings.
“Retail users on Coinbase have been very resilient during these market conditions, according to our data,” Armstrong wrote. “They’ve been buying the dip.
According to the Coinbase executive, they have seen a native unit increase for retail users across BTC and ETH on the exchange.
Citing diamond hands, Armstrong says most of Coinbase’s customers had native unit balances in February equal to or greater than their balances in December.
The Coinbase CEO framed this trend as a bullish counter-narrative to the current market gloom. While Bitcoin has pulled back toward the $68,000–$69,000 range and Ethereum has seen a 7% drop to levels below $2,000, retail investors are demonstrating conviction rather than panic.
Sponsored
The “diamond hands” phenomenon, where users maintain or increase their crypto holdings despite drawdowns, suggests a maturing retail base that may help stabilize prices and underpin long-term adoption.
Mixed Views Emerge as Retail Conviction Faces Market Risks
However, not everyone shares Armstrong’s optimism. Some critics argue that holding through sharp declines merely reflects significant drawdowns rather than true resilience.
Beyond holding behavior, community members are also voicing broader policy and market access concerns.
Sponsored
“Retail users deserve access to yield on stablecoins and the reversal of the accredited investor law,” commented Wendy O.
This suggests that expanded DeFi participation and yield opportunities could further strengthen retail confidence.
The context is important, coming days after Coinbase’s Q4 2025 earnings revealed declining trading volumes amid an 11% drop in broader crypto market capitalization.
Yet the exchange continued to see inflows of native units from retail users, hinting at a floor of accumulation that may cushion the market during bearish stretches.
Sponsored
Historical crypto cycles show that periods of sustained retail conviction often precede rebounds, as retail holders absorb volatility while institutional participants adopt more cautious postures.
Therefore, while Armstrong’s message reassures the crypto community and subtly defends Coinbase’s performance amid a turbulent quarter, it also shows that the retail market is changing from short-term speculation to longer-term accumulation.
While prices may remain choppy in the near term, these patterns suggest that retail investors are increasingly acting as stabilizing forces in the market, potentially serving as a catalyst for recovery when broader sentiment shifts.
