Coinbase Reports Net Profit of $2.6 Billion in 2024! Trump’s Election Boosts Cryptocurrency Market, Q4 Trading Volume Increases by 179%
On February 13, 2024, the well-known American exchange Coinbase announced its financial results for the fourth quarter (Q4) of 2024, reporting a net profit of $1.3 billion, while the net profit for the entire year reached $2.6 billion, significantly exceeding market expectations. The report indicated that following the U.S. presidential election, particularly with Donald Trump’s victory, the cryptocurrency market experienced a surge in activity, leading to a substantial increase in trading volume and marking one of Coinbase’s strongest quarters in recent years.
Trading Volume Soars, Q4 Transactions Reach $439 Billion
Coinbase’s total trading volume in Q4 2024 reached $439 billion, far surpassing the market forecast of $404 billion.
Coinbase’s total trading volume for Q4 2024 reached $439 billion, a new high in nearly a year.
Retail trading volume accounted for $94 billion, with revenue hitting $1.35 billion, representing a 179% increase from the previous quarter.
Institutional investor trading volume reached $345 billion, generating revenue of $141 million, marking a sequential growth of 155%.
In its financial report, Coinbase noted that the significant growth in trading volume from last year’s fourth quarter to this year was primarily driven by the high volatility in the cryptocurrency market and the rise in asset prices. This was closely linked to the optimistic market sentiment following Trump’s electoral victory, with expectations that he would promote more favorable cryptocurrency regulatory policies, positioning the U.S. as the “world’s cryptocurrency center.”
Coinbase’s report indicated that Trump’s victory was a major contributing factor.
Surge in Stablecoin and Staking Rewards Revenue
In addition to trading revenue, Coinbase also achieved impressive results in stablecoins and blockchain staking rewards:
Stablecoin revenue (referring to USDC) was approximately $226 million, a 9% decline from Q3, but the annual revenue reached $910 million, representing a 31% year-over-year increase.
Blockchain rewards revenue was approximately $215 million, a 39% growth from Q3.
A research report from the cryptocurrency research firm Coin Metrics indicated that the supply of USDC on the Coinbase platform grew by 23% in Q4 2024, providing additional revenue for Coinbase’s stablecoin business. However, Ethereum (ETH) staking services were affected by overall market trends, showing a net outflow of 1.3 million ETH in Q4, indicating a decline in market interest in ETH staking.
Stock Price Rises 8.44%, but Fluctuates in After-Hours Trading
Coinbase’s stock price surged by 8.44% on February 13, closing at $298.10. However, following the release of the financial report, the stock price slightly dipped to $293.72 in after-hours trading, reflecting the market’s ongoing digestion of the impressive earnings report.
Morningstar analyst Michale Miller noted in a report last November: “Coinbase has faced regulatory pressure from the U.S. Securities and Exchange Commission (SEC), but it is likely to become one of the biggest beneficiaries following Trump’s election.”
Coinbase Targets International Markets, Plans to Re-enter India
In addition to the U.S. market, Coinbase is also actively expanding into overseas markets and is currently in negotiations with Indian regulators, hoping to re-enter the market after exiting in 2023 to expand its trading business.
In summary, Coinbase’s financial performance in Q4 2024 was quite impressive, primarily driven by Trump’s election and market volatility, resulting in a significant increase in trading volume, revenue, and profits exceeding expectations. Moving forward, as the regulatory environment potentially relaxes and international market expansion plans unfold, Coinbase’s growth potential remains worthy of attention.
(Kaiko: Post-election trading surge expected to bolster Coinbase’s financial report, while Binance becomes the largest USDC market)
Risk Warning
Investing in cryptocurrencies involves a high degree of risk, and prices can be highly volatile, which may result in the loss of your entire principal. Please assess risk cautiously.
