Coinbase, one of the largest and most trusted platforms for buying, selling and managing crypto, recorded soaring revenue in the fourth quarter of 2024. This is in line with the crypto market rebound that occurred at the end of last year.
Coinbase managed to increase its revenue by 41% compared to the previous quarter, to 954 million US dollars. This revenue was driven by increased transaction volume and revenue from subscription services.
Transaction Volume Soars 90%
One of the main factors contributing to Coinbase's revenue was transaction volume which jumped 90% from the third quarter, to 154 billion US dollars. This transaction volume includes 125 billion US dollars from the institutional segment and 29 billion US dollars from the consumer segment.
This increase in transaction volume is in line with the increase in crypto prices such as Bitcoin, Ethereum and Dogecoin in the fourth quarter of last year. Bitcoin prices rose more than 50% in the fourth quarter, before the Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETF in the US in January 2024. The price of Bitcoin is currently around 52,000 US dollars.
Revenue from Subscription Services Rises 12%
In addition to transaction volume, Coinbase's revenue was also supported by revenue from subscription services and other services, which rose 12% from the third quarter, to 375 million US dollars.
This income includes income from stablecoins and custody fees, as well as blockchain rewards and interest income. Coinbase also offers the Coinbase Earn program, which gives users the opportunity to earn up to 400 US dollars in crypto just by learning about certain cryptocurrencies.
Additionally, Coinbase also has Coinbase Wallet, which allows users to store their crypto in personal wallets and explore decentralized finance (DeFi), buying and selling NFTs, and more.
Positive Net Profit for the First Time since 2021
Coinbase not only recorded high revenue, but also positive net profit for the first time since the fourth quarter of 2021. Coinbase reported net profit of US$273 million, after suffering a net loss of US$405 million in the third quarter.
This net profit also reflects an increase in adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — which rose 69% from the previous quarter, to 305 million US dollars.
This adjusted EBITDA marks the fourth consecutive positive quarter for Coinbase, after experiencing negative adjusted EBITDA for the previous three quarters.
Challenges and Opportunities in the Future
Although Coinbase posted impressive performance in the fourth quarter, the company still faces challenges and opportunities ahead. One of the challenges Coinbase faces is increasing competition from other crypto platforms, such as Binance, Kraken, and Gemini.
Coinbase has also had to adapt to regulatory and policy changes affecting the crypto market, such as oversight and reporting rules from the IRS and FinCEN. Additionally, Coinbase must also anticipate the impact of the launch of a spot Bitcoin ETF in the US, which could reduce demand for the crypto platform.
On the other hand, Coinbase also has opportunities to expand its markets and services in the future. Coinbase has a vision to become a “crypto super app” that can provide access to all aspects of the crypto ecosystem, from trading, storage, payments, loans, to NFTs.
Coinbase also has a strong institutional segment, which is attracting interest from large investors and companies, such as Tesla, MicroStrategy, and Square. Coinbase also has plans to launch new products, such as Coinbase Prime, which is a platform specifically for investors and institutions looking to invest in digital assets.
How To Buy Crypto With Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read also:
What is a Centralized Exchange (CEX)?
What is a Decentralized Exchange (DEX)?
Understanding Quant Zone on FTX Exchange
What Is the Intercontinental Exchange (ICE)?
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.