Coinbase Revenue Surpasses Nasdaq! Data Reveals Dex’s Amazing Profits, Analysts: RWA and DeFi Becoming Traditional Finance Touchstones
Analyst Jamie Coutts shared some data on Twitter, indicating that Coinbase has captured 11% of global trading revenue, ranking as the fifth largest exchange worldwide, surpassing Nasdaq. When adding the trading revenue from decentralized exchanges (DEX), it accounts for 5% of global trading revenue, even exceeding that of the Hong Kong Stock Exchange (HKEX) and the Chicago Board Options Exchange (CBOE). Jamie Coutts also predicts potential developments in the exchange business going forward.
Coinbase Becomes the Fifth Largest Exchange, Surpassing Nasdaq
Source: Jamie Coutts
From the data presented in the chart, it can be observed that the London Stock Exchange remains the largest exchange, accounting for 21% of global trading revenue. Following it is the Intercontinental Exchange (ICE), which holds 18% of global trading revenue; it is worth noting that this figure includes the New York Stock Exchange. The Chicago Mercantile Exchange (CME) ranks third with 12%, closely followed by Deutsche Börse with less than a 1% margin.
Fifth place goes to the American cryptocurrency exchange Coinbase, which even surpasses the well-known Nasdaq. When aggregating the trading fee revenue from decentralized exchanges, it accounts for 5% of global trading revenue, placing it in seventh position.
Coinbase’s five-year compound annual growth rate (CAGR) reaches an impressive 78%, demonstrating strong growth momentum. Similarly, DEXs exhibit a five-year CAGR of 106%. In this regard, Jamie Coutts pointed out that the growth rates of centralized exchanges and DEXs are approximately 2.5 to 4 times that of traditional finance. Moreover, DEXs have become one of the most profitable applications globally. He also stated that by 2024, the revenue of centralized exchanges is expected to align with that of traditional finance.
Analysts Optimistic About RWA and DeFi Sectors
If we value the centralized exchange (CEX) sector using Coinbase’s price-to-sales (P/S) ratio, the total market capitalization would reach $749 billion, compared to approximately $610 billion for traditional finance. He also predicts that there will be more acquisition cases involving centralized exchanges, as well as further cross-industry integrations (for example, partnerships between Robinhood and Arbitrum).
Additionally, several centralized exchanges will submit applications to seek listings on traditional exchanges. The launch of their own DEXs by centralized exchanges (whether through their own Layer 2 solutions or by building multi-chain protocols) is also expected to become mainstream (as previously mentioned, DEXs are among the most profitable applications).
He anticipates that the process of asset tokenization will accelerate, further boosting valuations in the RWA sector. As growth-oriented investors from traditional finance begin to invest in cryptocurrencies, DeFi will be their top choice, ultimately elevating the overall market capitalization of the sector by 4 to 5 times, with some protocols potentially outperforming ETH, BTC, and SOL during the same period.
Risk Warning
Cryptocurrency investments carry a high level of risk, and their prices can be highly volatile; you may lose your entire principal. Please assess the risks carefully.
