The well-known American exchange Coinbase announced its Q4 2024 financial report on February 13, revealing a net profit of $1.3 billion, with an annual net profit reaching $2.6 billion, significantly exceeding market expectations. The report indicates that following the U.S. presidential election, particularly after Donald Trump’s victory, the cryptocurrency market experienced a surge in activity, driving a substantial increase in trading volume and resulting in Coinbase’s strongest quarterly performance in recent years.
Trading Volume Soars, Q4 Trading Volume Reaches $439 Billion
Coinbase’s total trading volume for Q4 2024 reached $439 billion, far surpassing the market forecast of $404 billion.
Coinbase’s total trading volume for Q4 2024 reached $439 billion, marking a new high in nearly a year.
Retail trading volume reached $94 billion, generating revenue of $1.35 billion, representing a 179% growth compared to the previous quarter.
Institutional trading volume amounted to $345 billion, with revenue hitting $141 million, showing a quarterly increase of 155%.
In its financial report, Coinbase noted that trading volume has significantly increased from Q4 of last year to the present, primarily driven by the high volatility of the cryptocurrency market and rising asset prices. This surge is closely linked to the market’s optimistic sentiment following Trump’s election victory, with expectations that he will promote more favorable cryptocurrency regulatory policies, positioning the U.S. as the “world cryptocurrency center.”
Coinbase’s report indicates that Trump’s election is a major driving factor.
Significant Growth in Stablecoin and Staking Rewards Revenue
In addition to trading revenue, Coinbase achieved notable results in stablecoin and blockchain staking rewards:
– Stablecoin revenue (referring to USDC) was approximately $226 million, a 9% decrease from Q3, but the annual revenue reached $910 million, reflecting a year-on-year growth of 31%.
– Staking rewards revenue was approximately $215 million, a 39% increase compared to Q3.
A research report from the cryptocurrency research firm Coin Metrics indicated that in Q4 2024, the supply of USDC on the Coinbase platform grew by 23%, providing additional revenue for Coinbase’s stablecoin business. However, Ethereum (ETH) staking services were affected by overall market trends, with 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 After Hours
Coinbase’s stock price surged 8.44% on February 13, closing at $298.10. However, following the release of the financial report, the stock price slightly declined to $293.72 during after-hours trading, suggesting that the market is still digesting the impact of this impressive financial report.
Morningstar analyst Michale Miller even noted in a report last November: “Coinbase has historically faced regulatory pressure from the U.S. Securities and Exchange Commission (SEC), but it is expected to be one of the biggest beneficiaries following Trump’s election.”
Coinbase Aims for International Market, Plans to Re-enter India
Beyond the U.S. market, Coinbase is also actively expanding into international markets and is currently negotiating with Indian regulatory authorities, hoping to re-enter the market after exiting in 2023 to broaden its trading business.
In summary, Coinbase’s Q4 2024 financial performance is impressive, primarily driven by Trump’s election and market volatility, leading to a significant increase in trading volume and exceeding revenue and profit expectations. Looking ahead, with the potential easing of regulatory environments and plans for international market expansion, Coinbase’s growth potential remains worthy of attention.
(Kaiko: Post-election trading frenzy is expected to boost Coinbase’s financial report, with Binance becoming the largest USDC market)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile, which may result in the loss of your entire principal. Please assess the risks carefully.