During the second quarter of 2021, Coinbase generated $2.23 billion of revenue as Ethereum's trading volumes flipped Bitcoin for the first time.
According to industry standard financial estimators Refinitiv, Coinbase forecast revenue of $1.78 billion for Q2 2021 and beat analysts' predictions. Compared to expectations of $2.33, Coinbase earned $3.45 per share.
In Q2, the trading platform had a net profit of $1.6 billion, representing a jump of 4,900% from the $22 million reported during the same period in 2020.
A one-time line-item worth $737.5 million was recognized by Coinbase from its direct listing earlier in the quarter, which is characterized as a "tax benefit."
In total, $145 billion was traded by retail traders, whereas $317 billion by institutional investors, representing a 20% and a 47% increase respectively from Q1.
Platform clients include the following top 10 largest hedge funds based on assets under management:
Coinbase has partnered with a number of industry leaders in recent months, including Elon Musk, Tesla, Third Point LLC, PNC Bank, SpaceX, and WisdomTree Investments.
In Coinbase's nine-year history, Ethereum surpassed the pioneer crypto asset in trading volume for the first time with 26% and 24% of trading volume respectively. During that time period, Bitcoin trading volumes declined 39%, while Ethereum trading volumes increased 23%.
According to the crypto exchange's report, Bitcoin volume underwent a decline due to a percentage decrease in total bitcoin volume, as well as the addition of many new assets of which interest and speculation increased.
A number of factors have contributed to the rise in ETH trading volume, including an expansion of the DeFi and NFT eco-systems as well as increased staking demand due to Eth 2.0.
In the second quarter, Coinbase processed $462 billion of volume, an increase of 38% over Q1.
The report noted an increase in the number of retail customers and institutional clients across the platform during Q2 2021.
For Q2, there were 8.8 million retail monthly transacting users, an increase of 44%. The number of verified users was 68 million. With more than 9,000 institutions participating in the crypto economy, as the world’s most valuable exchange continues to grow and expand.