Coinbase made $2.23 billion in revenue in the second quarter, above analyst expectations of $1.78 billion, this was a significant increase over the previous quarter’s $1.78 billion.
When it comes to trading volume, Ethereum (ETH) overtook Bitcoin (BTC) on Coinbase for the first time in the second quarter of 2021, resulting in $2.23 billion in income for the cryptocurrency exchange.
Earlier this month, Coinbase released its second quarter earnings report, and the crypto exchange’s sales exceeded analysts’ expectations – with industry standard financial estimators Refinitiv expecting $1.78 billion in expected revenue for the company. In the fourth quarter, Coinbase’s earnings per share came in at $3.45, compared to analyst expectations of $2.33.
The trading platform reported a net profit of $1.6 billion in the second quarter of 2020, representing a stunning rise of 4,900 percent over the $32 million achieved in the same time the previous year.
When it comes to trading volume, ETH has surpassed BTC for the first time in the company’s nine-year history, with the two cryptocurrencies accounting for 26 percent and 24 percent of total volume, respectively.
BTC trading volume decreased by 39 percent when compared to the first quarter of this year, while ETH trading volume climbed by 23 percent during the same period.
Interesting data point from the @Coinbase Q2 results – ETH trading now bigger share than BTC trading. pic.twitter.com/a01JN2kHmx
— Boris Wertz (@bwertz) August 10, 2021According to the paper, the reduction in Bitcoin trading volume may have been caused by a decrease in total Bitcoin volume “as a percentage of global exchange spot volume,” as well as the launch of several new assets that sparked more interest and speculation in the market.
Increased demand for Eth 2.0 staking, as well as growth in the DeFi and NFT ecosystems, according to the firm are all contributing to the increase in the volume of ETH traded.
Total volume on Coinbase increased by 38 percent when compared to the first quarter, with the company executing $462 billion in transactions during the second quarter.
Went on CNBC and explained that everyone is underestimating Coinbase and Bitcoin, along with why AMC should bitcoin on their balance sheet.
Slowly, but surely, we continue to show the world why this is the most important technology.
pic.twitter.com/jNXWAkITZv
— Pomp (@APompliano) August 10, 2021As a result, operating expenses were extremely high, amounting to $1.35 billion and accounting for 67 percent of net sales.
A report from Coinbase indicated that the second quarter of 2021 was a “strong quarter,” with “growth and diversification” across the platform, with the report noting a considerable increase in retail and institutional clients, including:
“Retail Monthly Transacting Users (MTUs) grew to 8.8 million, up 44% from Q1 2021. Verified Users were 68 million. We now have over 9,000 institutions who continue to deepen and broaden their activities in the crypto economy.”
Retail traders accounted for $145 billion in total volume, while institutional investors accounted for $317 billion, representing increases of 20% and 47%, respectively, over the previous quarter.
The platform serves ten of the top one hundred largest hedge funds by assets under management (AUM):
“In addition, in recent months, we have formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments.”
