I just did an article about exciting partnership between Coinbase and deribit,Coinbase Reports Mixed Results in Q1 2024
Cryptocurrency exchange Coinbase has released its financial results for the first quarter of 2024, revealing a 40% year-over-year increase in revenue to $2 billion.
However, the company’s net income has declined significantly due to the crypto market downturn during the quarter.
Coinbase Revenue Growth
Coinbase’s revenue growth was driven by a surge in subscription and services revenue, which rose 9% quarter-over-quarter to $698 million.
This reflects increasing user demand for non-trading income sources.
The company’s adjusted EBITDA for the quarter was $930 million, with adjusted net income reaching $527 million.
Understanding Net Income Decline
Despite the revenue growth, Coinbase’s net income declined to $66 million, compared to $1.2 billion in the same period last year.
This decline is directly related to the crypto market downturn, which resulted in unrealized gains of $737 million in the first quarter of 2024.
A note about Institutional Trends
Coinbase’s institutional business continues to grow, with 86% of surveyed institutional investors either holding digital assets or planning to make allocations this year.
The company processed $315 billion in institutional trading volume in the first quarter and reported a $25 billion increase in average assets under custody.
The Stablecoin Growth
Stablecoins emerged as a major growth segment for Coinbase, with the average USDC balance held in Coinbase products rising 49% quarter-over-quarter to $12 billion.
USDC revenue was up 32%, and the total stablecoin balance on Base, Coinbase’s Ethereum Layer 2 network, climbed 12% to $4 billion.
Base Network Performance
Base, Coinbase’s Ethereum Layer 2 network, saw a 16% quarter-over-quarter rise in transaction volume, reinforcing its position as the most active Ethereum L2 by user engagement.
Conclusion
Coinbase’s mixed results in Q1 2024 reflect the ongoing volatility in the crypto market.
While the company’s revenue growth is a positive sign, the decline in net income highlights the challenges faced by crypto companies in the current market environment.
Key Takeaways
– Revenue growth: Coinbase’s revenue rose 40% year-over-year to $2 billion.
– Net income decline: Net income declined to $66 million due to the crypto market downturn.
– Institutional growth: Coinbase’s institutional business continues to grow, with 86% of surveyed institutional investors holding or planning to allocate digital assets.
– Stablecoin growth: Stablecoins emerged as a major growth segment for Coinbase, with USDC revenue up 32%.
