Coin Metrics predicts that Coinbase will report approximately $2 billion in revenue for the fourth quarter of 2024, marking a 109% year-over-year increase.
Trading Resurgence
Coin Metrics noted that Coinbase's trading volumes hit approximately $430 billion during Q4 2024, the highest since 2021. The increase was driven by renewed market optimism post-U.S. elections. Research firm Kaiko also reported that Coinbase saw its highest weekly trading volumes in two years during this period.
Other Revenue Sources
The supply of the US dollar-pegged stablecoin USD Coin (USDC) on Coinbase grew by 23%, likely boosting the exchange's stablecoin revenue, according to Coin Metrics. This reflects increased onchain activity and Coinbase's efforts to promote the stablecoin, including offering a 4.5% interest on certain USDC holdings. Additionally, Coinbase earns hundreds of millions each quarter from supporting staking cryptocurrencies such as Ether (ETH) and SOL.
Key Market Players and Events
Several major crypto players reported earnings during the week of February 10, including Bitcoin miners Hive Digital and Hut 8, as well as exchanges CME Group and Robinhood. Shares of Coinbase's stock rose roughly 40% following Donald Trump's victory in the U.S. presidential election on November 5.
Upcoming reports are expected to confirm the forecasts of significant revenue growth for Coinbase, fueled by increased trading activity and other revenue sources.
