Coinbase Second Quarter Revenue Reaches $1.45 Amidst Regulatory Progress

Key Points:

• Coinbase second quarter revenue fell to $1.45 billion, down from $1.6 billion in Q1.
• The company boosted transactions on its Base Layer 2 solutions by 300% and made strides in regulatory advocacy.
• Coinbase’s net income plummeted to $36 million due to significant investment losses.

Coinbase, the largest cryptocurrency exchange in the United States, announced $1.45 billion in total revenue for Q2 2024. Though Coinbase second quarter revenue beat expectations, it tumbled down to $1.6 billion from the preceding first quarter.

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Coinbase Second Quarter revenue Fades With Lower Transaction Volume

The company witnessed a transaction-related revenue drop of 27% compared with the previous quarter, which was $781 million. Volume across all products dropped by 28%, with the volume for both individual and institutional being down by 34% and 26%, respectively. On the other hand, subscription and service revenue surged 17%, reaching $599 million.

Through it all, though, Coinbase is diversifying its revenue streams, with Bitcoin accounting for 35% of transaction volume and 31% of Coinbase second quarter revenues as Solana represented 10% of trading revenues.

In the quarter, the transaction volume on Base, Coinbase’s layer 2 solution, surged 300%. It now tops all L2 platforms in transactions processed. Smart wallets were introduced, and the company expanded USDC by partnering with Stripe. All of that is to improve the utility of the platform and wider crypto adoption.

Bottom Line Plummets on Investment Losses

Its net income nosedived to $36 million from $1.2 billion in Q1 on the back of a hit from $319 million in pre-tax losses from its cryptocurrency investments.

On the regulatory front, Coinbase remained very active in advocating for more clarified crypto regulation. The company remained committed to the “Stand With Crypto” initiative, with over 1.3 million supporters to date, and views two recent developments—the green light on Ethereum ETFs and the compliance of USDC with the EU MiCA framework—as two important markers from a regulatory point of view. Finally, Coinbase minted its Q2 earnings report on-chain.