November 26, 2022

Coinbase Sees Record Q2 Revenue of $2B, 95% from Transaction Fees

2 min read

Coinbase has exposed its bumper revenues in its second-quarter shareholder letter, released on August 10. The crypto trading platform acknowledged that the period was a strong one for growth on the back of a crypto market bull run.

The essential figure to draw from the report is Q2 net profits of $2 billion, its greatest quarter ever. This has actually resulted in a whopping net income of $1.6 billion for the period. Earnings were more than double that of the previous quarter which saw the company net $771 million. Coinbase’s earnings per share came in at $3.45, much greater than analyst quotes of $2.33.

The figures are hardly surprising thinking about that Coinbase derives 95% of its make money from trading costs which are among the greatest in the industry. It reported $1.9 billion in deal profits and over $100 million in subscription and services revenue.

Surge in Coinbase Retail Traders

The report noted that month-to-month negotiating users on the platform grew to 8.8 million, up 44% from Q1 2021, with confirmed users amounting to 68 million at the end of the period. It also noted an increase in institutional customers:

“We now have over 9,000 institutions who continue to deepen and widen their activities in the cryptoeconomy and more than 160,000 community partners who are utilizing our crypto tools and services to engage with their own customers.”

The report included that since June 30, properties on the platform totaled $180 billion. Crypto possessions on the platform represented 11.2% of the overall market capitalization of crypto possessions. At the time of composing overall market cap had actually increased to $1.94 trillion.

Speaking on CNBC today, Anthony Pompliano stated that everybody is ignoring Coinbase and Bitcoin, adding that Entertainments giant AMC should get some for their portfolio.

Ethereum More Popular Than Bitcoin

For the very first time, Ethereum trading volume was actually higher than Bitcoin for the duration with 26% ETH compared to 24% BTC. It included that total trading volume in Q2 was $462 billion, a boost of 38% compared to Q1’s $335 billion.

“In Q2, our overall Trading Volume continued to diversify beyond Bitcoin into Ethereum and other crypto properties.”

It associated this flippening to growth in DeFi, NFT’s, and ETH 2.0 staking. At the time of press, BTC was trading down a little at $45,590 while ETH had acquired a little on the day to reach $3,160 according to CoinGecko.