Coinbase delivered a stellar Q4 earnings report, surpassing Wall Street projections as rising crypto adoption and renewed market enthusiasm fueled trading activity.
The exchange reported $2.3 billion in total revenue, marking an 88% year-over-year increase and its strongest quarter in three years.
Net income surged to $1.3 billion, largely driven by a surge in transaction volume and higher crypto prices following November’s U.S. elections.
Institutional Adoption Accelerates, USDC Sees Major Growth
Institutional players have been a driving force behind Coinbase’s impressive numbers. Institutional trading volume surged 128% quarter-over-quarter, supported by a record influx into Bitcoin ETFs and broader market participation. Coinbase’s custody services also expanded significantly, with total assets under custody reaching $220 billion.
USDC, the stablecoin co-founded by Coinbase and Circle, experienced a breakout year. On-chain USDC payments surged 225% compared to 2023, cementing its position as a dominant player in the stablecoin market. Coinbase’s subscription and services revenue reached $2.3 billion, with USDC playing a key role in its non-trading income.
Base Becomes a Top Layer-2 Network
Base has quickly established itself as a major player in the onchain economy. The network saw assets on its platform grow 89% quarter-over-quarter, surpassing $14 billion in total value.
With a pro-crypto administration now in office, Coinbase executives anticipate a more favorable regulatory environment. The company has actively pushed for clearer stablecoin regulations, betting that a structured legal framework will accelerate adoption. Additionally, potential SEC case resolutions and broader crypto market participation could further strengthen the exchange’s position in 2025.
Looking ahead, Coinbase projects Q1 2025 trading revenue at approximately $750 million through mid-February, with subscription and services revenue expected between $685 million and $765 million. While regulatory uncertainty still looms, the exchange’s ability to diversify revenue streams suggests it is well-positioned for continued expansion.
