Coinbase Increased Its Revenues with Ethereum and Surpassed Its Targets.

The US-based cryptocurrency exchange Coinbase managed to significantly increase its revenues in the third quarter of the year due to both an increase in transaction volume and a rise in Ethereum (ETH) prices. During this period, Coinbase achieved revenues of $1.9 billion, surpassing analysts' estimates of $1.8 billion.

The company's transaction revenues also increased to $1 billion, nearly doubling the $573 million revenue from the same period last year. As of the third quarter, the total transaction volume reached $295 billion, and the number of retail users increased by 37% compared to the previous quarter.

Coinbase's subscription and service revenues also reached $747 million, up 14% quarter-over-quarter. Of these revenues, $355 million came from stablecoins, while $185 million came from staking rewards. In particular, the average USDC balances exceeding $15 billion made a significant contribution to Coinbase’s financial performance.

Another noteworthy development was that Coinbase’s Ethereum-based Layer-2 network Base became profitable for the first time in the third quarter. While the increase in transaction numbers and the upward movement in Ethereum prices contributed to revenue growth, the decrease in fees per transaction somewhat balanced the profit margin. The company stated that thanks to Base’s lower costs and speed, it has become a preferred on-chain network for developers.

On the institutional side, Coinbase also recorded growth, increasing its institutional trading revenues to $135 million, with $52 million of this revenue coming from the Deribit acquisition completed in August. Coinbase reported a net income of $433 million and an adjusted EBITDA of $801 million. The company indicated that it held $11.9 billion in cash and cash equivalents at the end of the quarter, and that cash flow from operations had strengthened.

For the fourth quarter, Coinbase expects transaction revenue to be around $385 million and subscription revenues to be in the range of $710–790 million. In light of this data, investors should closely monitor Coinbase’s performance in the upcoming periods and the price movements of Ethereum.