Key Points:
- Coinbase expected to report $2 billion in Q4 2024 revenue, marking a 109% YoY increase.
- Trading volumes hit $430 billion, the highest since 2021, driven by post-election optimism.
- Stablecoin and staking revenues contribute to Coinbase’s financial growth.
Coinbase’s Expected Q4 Boom
Crypto exchange giant Coinbase is set to report a staggering 109% year-over-year (YoY) revenue growth for the fourth quarter of 2024, according to a Feb. 11 report by Coin Metrics. The digital asset research firm estimates Coinbase’s Q4 revenue will reach approximately $2 billion, a 65% jump from the previous quarter. The official earnings report is scheduled for Feb. 13.
A major driver of this revenue surge is Coinbase’s trading volumes, which reached $430 billion in Q4—the highest levels recorded since 2021. This growth was attributed to renewed market optimism following the U.S. elections in November.
Post-Election Trading Resurgence
Crypto trading activity has seen a significant spike since former President Donald Trump’s victory in the U.S. elections. Trump has promised to position America as the “world’s crypto capital,” fueling renewed investor confidence in digital assets.
On Nov. 5, crypto trading firm Galaxy Digital recorded its largest trading day of the year, highlighting the direct impact of the election results on market activity. Meanwhile, Coinbase’s stock (COIN) has surged approximately 40% since Trump’s victory, according to Google Finance data.
Stablecoin & Staking Revenues on the Rise
Beyond trading, Coinbase’s revenue boost is also being driven by its growing stablecoin and staking activities. The supply of USD Coin (USDC), a U.S. dollar-pegged stablecoin, grew by 23% on Coinbase, further bolstering the exchange’s stablecoin-related revenue. Coinbase has actively promoted USDC by offering up to 4.5% interest on certain holdings.
Additionally, Coinbase generates hundreds of millions of dollars each quarter through staking services for cryptocurrencies like Ether (ETH) and Solana (SOL). Staking allows investors to lock up crypto as collateral with blockchain validators, earning network fees and rewards in return.
Looking Ahead
Coinbase’s robust Q4 performance is a promising sign for the broader crypto market. As stablecoin adoption and cryptocurrency exchange-traded funds (ETFs) gain traction, digital asset performance is expected to strengthen in 2025, according to a Dec. 26 Citi research report.
Several other major players in the crypto space, including Bitcoin miners Hive Digital and Hut 8, as well as exchanges CME Group and Robinhood, are also set to report earnings in the week of Feb. 10, further shaping the outlook for the industry.
With bullish momentum on its side, Coinbase appears to be riding the wave of renewed investor confidence and growing market activity as it heads into 2025.
