Ethereum overtakes Bitcoin on Coinbase, breaking records

Exchange Coinbase reports record Q2 results with $2.03 billion in revenue. Ether also surpasses Bitcoin in transaction volume.

Q2 was a record-breaking quarter for the cryptocurrency market. Bitcoin set a new ATH above $60K, as did Ether at over $4K. Altcoins were also recording levels never reached… before the mid-May crash.

It is in this context that Coinbase is having its best quarter ever. According to the financial results published by the crypto exchange, CEX posted a turnover of $2.03 billion over the period.

Ether accounts for 26% of transaction volume

This is more than analysts’ forecasts, which were counting on $1.88 billion. Coinbase also saw its profit almost double from the previous quarter to $1.6 billion. Overall, all indicators exploded over three months.

In a euphoric market, the number of users performing monthly transactions (MTU) soared by 44% to 8.8 million. In total, the exchange’s user base rose to 68 million.

Coinbase derives most of its revenue from fees charged on transactions. These revenues represent 1.9 billion dollars. The CEX charges fees on Bitcoin and Ethereum transactions.

Moreover, a first was recorded between April and June 2021. This is indeed the first time that the transaction volume in Ether supplants that of Bitcoin. Ethereum weighs over the quarter 26% of transactions in volume, against 24% for BTC.

A less dynamic 3rd quarter

However, fees are no longer Coinbase’s only cash machine. The crypto exchange is now developing other significant revenue streams. Subscriptions and services generated over $100 million in revenue during Q2.

While retail investors account for a substantial portion of its customers, Coinbase is also growing with another customer base. Indeed, the firm boasts more than 9,000 institutional clients, a sign of the democratization of crypto.

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These different financial indicators satisfy investors. After the publication of its results, Coinbase saw its share price rise to over $280. The price has since fallen sharply back to $256. The May ATH of $342 is still a long way off.

The outlook will be less optimistic for Q3, which covers the period after the crypto fall. Coinbase warns, trading volume and MTU will be lower than the previous quarter.