Coinbase Poised for $2 Billion in Q4 2024 Revenue Amid Crypto Market Resurgence
Digital asset research firm Coin Metrics forecasts that leading crypto exchange Coinbase will report approximately $2 billion in revenue for the fourth quarter of 2024. If accurate, this would represent a 109% year-over-year increase and a 65% jump from the previous quarter, according to a report published on February 11. Coinbase is set to release its Q4 2024 earnings report on February 13.
Record Trading Volumes Drive Revenue Surge
Coin Metrics attributes the revenue spike to a surge in trading activity, with Coinbase’s Q4 2024 trading volume reaching $430 billion—the highest level recorded since 2021. The research firm pointed to renewed market optimism following the U.S. elections as a primary driver of this growth.
Supporting this outlook, blockchain analytics firm Kaiko noted on February 10 that Coinbase experienced its highest weekly trading volumes in two years during Q4 2024. Kaiko also predicted a strong earnings report for the exchange.
Crypto Market Rebounds Following U.S. Elections
The broader crypto market saw a resurgence in trading activity following Donald Trump’s victory in the November 2024 U.S. presidential election. Trump has pledged to establish the U.S. as “the world’s crypto capital”, fueling optimism among digital asset investors.
On November 5, the day of Trump’s win, crypto trading firm Galaxy Digital recorded its largest trading day of the year, reflecting a surge in investor confidence. Meanwhile, Coinbase’s stock (COIN) has climbed approximately 40% since the election, according to Google Finance data.
Additional Revenue Streams: Stablecoins and Staking
Beyond trading fees, Coinbase benefits from multiple revenue sources, including stablecoins and staking services.
The supply of USD Coin (USDC) on Coinbase expanded by 23% in Q4 2024, likely boosting the exchange’s earnings from stablecoin transactions. This growth is attributed to increased on-chain activity and Coinbase’s incentives, such as offering 4.5% interest on certain USDC holdings.
A December 26 Citi research report projected that continued adoption of stablecoins and cryptocurrency ETFs would drive digital asset growth in 2025.
Coinbase also generates hundreds of millions of dollars per quarter by supporting staking services for cryptocurrencies like Ethereum (ETH) and Solana (SOL), according to Coin Metrics. Staking allows investors to earn rewards by locking up assets with a blockchain validator, though it carries risks such as “slashing,” which can result in lost collateral if the validator acts improperly.
Crypto Earnings Season in Full Swing
Coinbase is one of several major crypto firms reporting earnings this week. Others include Bitcoin mining companies Hive Digital and Hut 8, as well as trading platforms CME Group and Robinhood.
With trading volumes surging and institutional interest in crypto on the rise, Coinbase appears well-positioned to capitalize on the next wave of digital asset adoption.
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