Coinbase takes record $1.9bn in transaction revenue in Q2
Coinbase, the world’s second largest cryptocurrency exchange by trade volume, took a record $1.9bn (£1.4bn) in transaction revenue in Q2 of 2021.
Trading volume increased by 1,550 per cent hitting $462bn, up from $28bn in Q2 of 2020. Net revenue for Q2 and adjusted EBITDA also increased tenfold, reaching $1.6bn and $1.1bn respectively.
Bumper transaction volume was driven by favourable market conditions in Q2, which saw high levels of volatility as a result of a major market correction, and increasing numbers of site users.
During the period monthly transacting users saw a year on year increase of 487 per cent jumping from 1.5 to 8.8 million with institutional traders showing signs of increasing engagement.
According to Coinbase the site now has over 9,000 institutional investors who accounted for $317bn of Q2 transaction volume, up from $17bn in Q2 last year.
In a statement, Coinbase said the results are good news for the crypto economy. They said: “The cryptoeconomy is still in its early stages, but it is clear that every year more and more economic activity will take place on crypto rails.”
The company announced that it intends to “prioritize reinvestment into the business to continue to grow the crypto economy” and has opted not to issue dividends to shareholders.
Despite the stellar results, the report predicted that falling volatility in the crypto market will cause trade volume and users to drop in Q3.
Coinbase stocks, which debuted on the Nasdaq exchange in April, are down 3.85 per cent in the past 24 hours.
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