Coinbase Reports Best Quarter in Over a Year as Crypto Surges Post-Trump Election

Trump crypto boost – Coinbase earnings were reported as the strongest quarterly earnings in a year, triggering a Coinbase stock and crypto stock surge.

Coinbase has reported its strongest quarterly earnings in over a year, fueled by a surge in crypto trading activity following the election of U.S. President Donald Trump.

The company’s Q4 2024 financial results, released on Feb. 13, revealed a total revenue of $2.3 billion, an 88% increase quarter-over-quarter, far surpassing analyst expectations. Net income also saw significant growth, reaching $1.3 billion.

The crypto exchange’s trading volume soared to $439 billion, exceeding previous forecasts of $404 billion.

Retail and institutional investors contributed to the growth, with consumer transaction revenue surging 178% quarter-over-quarter to $1.35 billion and institutional revenue increasing by 155% to $141.3 million.

EXPLORE: Best New Cryptocurrencies to Invest in 2025

Market Volatility and Regulatory Optimism Fuel Growth For Coinbase Stock

In a shareholder letter, Coinbase attributed its revenue increase to heightened crypto market volatility and rising digital asset prices, particularly in Q1 and Q4 of 2024.

Revenue from stablecoins and blockchain rewards also contributed to the strong performance, with Coinbase recording $225.9 million from stablecoins and $214.9 million from blockchain rewards, marking a 38.8% quarterly growth in the latter category.

Analysts point to renewed investor optimism following Trump’s election victory as a key driver behind the market resurgence. The president has promised to make the U.S. a global leader in crypto innovation and has nominated pro-crypto officials to lead key regulatory agencies.

Research firm Coin Metrics projected Coinbase’s revenue to grow over 100% year-over-year, citing increased trading activity fueled by regulatory optimism and institutional participation.

Despite its strong performance, Coinbase faces challenges in attracting retail traders, who have historically paid higher transaction fees. According to research firm Kaiko, retail participation accounted for only 18% of total trading volume in 2021, a sharp decline from 40% in 2021.

Growth of Coinbase's $COIN "Subscription & Services Revenue" is…INSANE! (and I don't use CAPS or "insane" lightly). $45 million in 2020, $2.31 billion in 2024. pic.twitter.com/g85rJYHOOu

— Jevgenijs Kazanins (@jevgenijs) February 13, 2025

Following the earnings report, Coinbase shares rose 8.44% to $298.1 but experienced slight after-hours volatility, dipping 0.88% to $295.01, according to Google Finance data.

The strong performance comes just a day after online brokerage firm Robinhood reported a 700% year-over-year jump in crypto revenue, underscoring the growing demand for digital assets.

Coinbase has also been expanding its subscriptions and services, though trading remains its core business, still accounting for over 50% of total revenue.

One of its key revenue streams, Ethereum staking, has faced challenges, with a net outflow of 1.3 million ETH in Q4. However, analysts believe a more crypto-friendly regulatory environment under Trump could support Ethereum’s staking growth in the long run.

EXPLORE: 15 New & Upcoming Coinbase Listings to Watch in 2025

International Expansion and Regulatory Outlook For Coinbase

Looking ahead, Coinbase is focusing on international expansion. The company is reportedly in talks with Indian regulators about re-entering the market after halting operations in 2023.

Equities researcher Michael Miller of Morningstar noted that Trump’s election could ease regulatory pressure from the SEC, benefiting firms like Coinbase that have struggled under the previous administration’s scrutiny.

EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025