Coinbase Rides on Higher Trading Volume for Long-Term Growth

Coinbase Global, Inc. COIN relies heavily on trading volumes as a core driver of revenues and a key indicator of its long-term business trajectory. This crypto leader generates the bulk of its revenues through transaction fees from both retail and institutional customers.

Trading volume is primarily influenced by overall market dynamics, namely the price of crypto assets, crypto asset volatility, macroeconomic conditions and the share of total crypto market spot trading volume. While Bitcoin, the largest cryptocurrency, represented 27% of trading volume, Ethereum, the second-largest cryptocurrency, represented 11% of trading volume in the first quarter of 2025. Other crypto assets account for 38% of trading volume. Trading volume mostly benefits during the bull market phase.

COIN has prioritized crypto utility and envisions bringing 1 billion or more people on the crypto rail. It is thus heavily investing in infrastructure and foundational platforms. Rising volumes not only increase transaction revenues but also boost demand for complementary services like custody, staking and subscription-based products, enabling greater revenue diversification and reinforcing Coinbase’s growth engine.

Recognizing the cyclical and volatile nature of crypto markets, Coinbase is positioning itself to thrive in such an environment. It is enhancing global accessibility, deepening liquidity pools and tailoring offerings to institutional and high-frequency traders—steps that improve user activity and drive operational leverage. Should crypto markets continue to rise and Coinbase preserve or grow its market share, trading volumes could significantly enhance earnings potential, fund ongoing innovation and support shareholder value—making COIN a compelling long-term growth investment.

What About COIN’s Competitors?

COIN competes with Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR, two crypto-oriented companies.

Robinhood Markets has witnessed a recovery in trading volumes, particularly in equities and options, supported by rising retail investor activity and elevated market volatility. This growth in trading activity is driving higher transaction-based revenues, which remain central to Robinhood Markets' overall expansion.

Interactive Brokers continues to deliver steady growth in trading volumes, driven by an expanding international client base and robust participation from retail and institutional investors. The increased trading activity is elevating commission revenues, enhancing financial results, and supporting Interactive Brokers’ long-term growth outlook.

COIN’s Price Performance

Shares of COIN have gained 22.1% year to date, outperforming the industry.

COIN’s Expensive Valuation

COIN trades at a price-to-earnings value ratio of 57.3, above the industry average of 15.5. However, it carries a Value Score of F.

Estimates for COIN Witness Northward Movement

The Zacks Consensus Estimate for COIN’s second-quarter and third-quarter 2025 EPS has moved up 9.6% and 7.8%, respectively, over the past 30 days. The same for full-year 2025 and 2026 EPS has increased 22.8% and 3.5%, respectively. While the consensus mark for COIN’s 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase.  
 

The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases. 

COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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