Cryptocurrency exchange Coinbase published its second quarter earnings report.
Coinbase beats earnings, $1.45B in revenue vs $1.39B.
Cryptocurrency markets are poised for a significant surge in activity following a notable rebound in prices this year, according to industry experts. FactSet, a leading financial data and software company, projects a 146% increase in total trading volume, expected to reach $226.5 billion. This surge is largely driven by institutional customers, with analysts forecasting a 228% rise in institutional trading volume to $256 billion. Meanwhile, retail trading volume is anticipated to grow by 175%, reaching $38.6 billion.
Transaction revenue is projected to soar by 141%, totaling $790 million. This increase is supported by a 124% rise in retail transaction revenue. FactSet estimates that institutional transaction revenue will jump from $17 million last year to $61 million this year.Furthermore, analysts expect subscription and services revenue to grow by nearly 69% in the second quarter, reaching $566 million. Custodial fee revenue is also predicted to rise, with estimates pointing to an increase from $17 million in the second quarter of 2023 to $39 million this year. This growth is attributed to the exchange serving as the custodian for a majority of U.S. spot bitcoin ETFs launched in January, as well as many spot ethereum ETFs that began trading on July 23.
