Coinbase earnings show a bullish start to the year

Coinbase’s stablecoin revenue jumped 15% quarter over quarter

May 2, 2024 04:44 pm

Coinbase CEO Brian Armstrong | "Brian Armstrong"/Hubert Lamela (CC license)

Coinbase’s earnings seem to show that crypto is ready for a bull market, if it’s not in one currently.

The company impressed Wall Street with its earnings on Thursday, posting beats across the board.

Coinbase also reported that Base was continuing to see adoption.

“We are seeing early product market fit with Base, our layer-2 solution, where developer activity has surged and Base has processed over 2x more transactions than Ethereum in the last 30 days,” Coinbase said in its earnings letter.

Stablecoin revenue also jumped 15% quarter over quarter to $197 million.

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“The primary driver was higher USDC market capitalization, which is the total amount of USDC in circulation. The USDC market capitalization growth rate was the highest among all USD stablecoins in Q1,” the company added.

Read more about the company’s earnings results in the article below:

Analysts were expecting the crypto exchange to come in on top, but the stock slipped in after-hours trading after notching gains throughout the day Thursday.

The stock hit a low of roughly $200 earlier this week, nearly $30 off of its current price. Bitcoin also notched a weekly low on Wednesday — falling to $56,000 before rebounding to $59,000. It’s down 8.5% in the past seven days.

While it’s important not to downplay Coinbase’s quarter, it is a snippet of time in the past. The weakness seen in the crypto market just this week won’t be reflected in the company’s earnings until next quarter.

Over the past month, COIN is in the red — down roughly 8% — though it’s still posted impressive gains over the last year, up over 360%.

Coinbase isn’t the only company showing off its strength as we enter the next phase of the crypto cycle.

Earlier this week, Tether released its attestation. The stablecoin issuer announced that it smashed previous records, tallying a net profit of $4.5 billion in the first quarter. It previously notched an all-time high of $.28 billion in net profit.

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