Key Highlights
- •Coinbase rebounds with higher trading volumes and rising transaction revenues.
- •Ethereum strengthens dominance, capturing a larger share of Coinbase trading activity.
- •Investor confidence grows as Coinbase expands workforce and Bitcoin holdings.
Financial Performance Rebounds
Coinbase Global has staged a notable rebound as both trading volumes and transaction revenues surged in the third quarter. The cryptocurrency exchange reported a transaction revenue of $1 billion, marking a 37% increase from the previous quarter and nearly double the figure recorded a year ago. Overall trading volumes rose to $295 billion from $185 billion over the same period last year, reflecting a renewed wave of activity among traders.
The company’s latest report contrasted sharply with the previous quarter, when both trading and revenue declined. According to Coinbase, the rise was driven by unique token listings and increasing prices of long-tail assets, which encouraged participation from advanced traders. Total revenue climbed to $1.9 billion from $1.2 billion a year earlier, while net income reached $433 million—higher year-on-year but slightly down compared to the prior quarter.
Ethereum Strengthens Its Share in Coinbase’s Ecosystem
Ethereum’s performance stood out during the quarter, capturing a larger portion of Coinbase’s overall trading landscape. ETH accounted for 22% of total trading volume, up from 15% in the previous quarter. Transaction revenue linked to Ethereum also expanded to 17% from 12%. Bitcoin maintained its lead in trading and transaction revenue but saw a modest decline in its overall contribution as Ethereum advanced.
Besides, Ethereum outperformed Bitcoin over the past three months, gaining over 6% to trade near $3,755, while Bitcoin slipped nearly 6 percent during the same timeframe. Coinbase added $299 million worth of Bitcoin to its holdings, reinforcing its long-term bullish stance. According to CEO Brian Armstrong, the company increased its Bitcoin reserve by 2,772 BTC during the quarter and continues to accumulate more.
Headcount Growth and Market Reaction Signal Ongoing Expansion
Furthermore, Coinbase’s headcount grew by 12% quarter-on-quarter, signaling ongoing expansion despite market volatility. After a 5.7% drop during the regular trading session, Coinbase shares recovered slightly in after-hours trading, gaining 2.5% as investors responded positively to the company’s results.
Coinbase’s latest earnings reflect renewed optimism in the cryptocurrency sector, driven by active retail participation and growing institutional interest, with Ethereum emerging as a key catalyst in the company’s performance.