Coinbase and the decentralized finance (DeFi) sector are presenting serious competition to traditional financial (TradFi) exchanges as Bitcoin ETFs surpass gold in assets under management (AUM).
Coinbase Leads with Explosive Revenue Growth
In 2024, Bitcoin and cryptocurrency exchange Coinbase has outperformed Nasdaq in revenue, reflecting the explosive growth of the crypto market. Data shared by Jamie Coutts, chief crypto analyst at Real Vision, on Dec. 17 highlights this milestone. The figures show Coinbase’s 12-month exchange revenue nearing $6 billion.
Crypto Trading Surges in 2024
The transformation of crypto markets in Q4 2024 has positioned the sector as a formidable challenger to Wall Street. Coinbase stands out prominently, ranking fifth globally in exchange revenue.
Over the past 12 months, Coinbase generated $5.75 billion in revenue, surpassing both Nasdaq and CBOE. This figure accounts for 11% of global exchange revenue, more than double that of the entire decentralized exchange (DEX) sector, which is experiencing rapid growth.
“Centralized exchanges (CEXs) and DEXs are growing 2.5-4 times faster than traditional finance,” Coutts noted.
DeFi and TradFi: 2025 Competition Heats Up
Looking ahead, 2025 is set to bring intensified competition between crypto platforms and traditional finance institutions. Simultaneously, DeFi protocols are poised to potentially deliver greater returns than major cryptocurrencies, such as Bitcoin and Ethereum.
While comparing fees and revenues isn’t entirely like-for-like, Coutts emphasized that the crypto sector has faced years of regulatory pressure and neglect. However, it is now “primed for a re-rating higher.”
Coinbase Stock Soars
Coinbase’s stock price has doubled over the past three months, outperforming even Bitcoin’s remarkable gains. This growth further highlights the surging momentum of the crypto sector in 2024 as it continues to reshape the financial landscape.
