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In summary
- Coinbase generated $5.75B in transaction revenue, outperforming the Nasdaq and HKEX over the past 12 months.
- High fees boosted revenue, although its trading volume is still lower than the Nasdaq.
- It is projected that Coinbase could be the largest exchange by revenue and volume within 10 to 20 years.
Coinbase has now surpassed two of the world’s largest stock exchanges in terms of trading revenue, according to a Cryptocurrency analyst at private bank Coutts.
The cryptocurrency exchange generated $5.75 billion in trading revenue over the past 12 months, compared to just $4.54 billion for the Nasdaq, where many of the world’s most valuable companies are traded, including Apple, Google and Microsoft.
Coinbase also outperformed the Hong Kong Stock Exchange, the HKEX, which generated $2.67 billion over the past year, as well as Brazil’s Balcão Exchange, which generated $1.81 billion.
Keep in mind that these numbers are not directly comparable and depend on the fees exchanges charge per transaction—for example, when buying or selling stocks or Bitcoin—not just the total number of transactions or the popularity of the platform.
To put these figures in context, all major cryptocurrency, stock and commodity exchanges worldwide generated around $51.27 billion in trading revenue, according to data from Coutts.
putting in context Coinbase revenue
Although Coinbase’s transaction revenue growth is very high, it is still far behind the world’s largest exchanges.
The London Stock Exchange (LSE) generated $10.82 billion in trading revenue over the past 12 months. The Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE), as well as numerous futures, debt and commodities exchanges, also remains far ahead with $9.16 billion in trading revenue.
Mouloukou Sanoh, CEO of liquidity provider MANSA Finance, which builds on Coinbase’s BASE Blockchain, noted that although Coinbase’s transaction revenue surpasses many of the world’s largest exchanges, its transaction volume lags behind the NASDAQ.
“Coinbase still has significantly lower volume than all the exchanges listed in Coutts’ data. But because they charge higher fees, that’s where they have higher transaction revenue,” he said.
Sanoh added: “I think there is still a very, very long way to go.”
Still, he predicts that Coinbase is likely to continue outperforming traditional exchanges in revenue, potentially reaching third place in total transaction revenue by 2025.
However, he believes it may take 10 to 20 years before Coinbase surpasses the Nasdaq in total trading volume.
“I feel like the next 10 to 20 years is when we will see cryptocurrency exchanges completely overtake traditional markets, but it will still take a long time,” he said. “But I wouldn’t be surprised if, at some point after the turn of the decade, Coinbase is the largest global exchange, both by volume and trading revenue.”
Coinbase still has a long way to go if it wanted to overtake the NASDAQ in terms of transaction volume; it had approximately $8 billion in trading volume over the past 24 hours, according to Coingecko, compared to a staggering $445 billion for the Nasdaq.
Sanoh believes this is likely due to Coinbase’s growth potential in Latin America, Africa, Europe and other areas outside of its traditional core market in the US.
“I think their distribution in the US is very strong, but internationally they have been quite weak and hesitant to expand,” he said. “But now with the new management, they will be more optimistic about international expansion. I think that’s where the next billions of dollars in revenue and volume will come from.”
Coinbase sales fell to $1.2 billion in the third quarter of 2024 from $1.45 billion in the previous quarter, missing analyst expectations. It reported a profit of $75 million compared to $2 million a year earlier.
Coinbase did not immediately respond to a request for comment from Decrypt.
Edited by Stacy Elliott.
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