Coinbase News: Major Decline in Stock Performance and Focus on USDC Profits in Q1 2025

In the first quarter of 2025, Coinbase, one of the leading cryptocurrency exchanges, experienced a significant drop in its stock price, marking its worst quarter since the FTX collapse. Despite this, the company is circling its USDC profits, hinting at potential future strategies. Here’s a closer look at the developments.

Coinbase Stock Underperforms in Q1 2025

Coinbase (COIN) shares declined by over 30% during Q1 2025, primarily due to escalating concerns about the US economy and its impact on digital assets. The shares started 2025 trading at just over $257 and ended the quarter at a little over $172. This was the worst quarter for Coinbase’s stock performance since the collapse of FTX in November 2022. Google Finance data revealed a drop of nearly 33% during this quarter.

Coinbase Circles USDC Profits, Highlights Potential for Crypto Explosion

Circle, the issuer of the second-largest stablecoin $USDC with over $60B in market cap, finds itself in a situation where Coinbase earns the majority of the revenue share from $USDC reserves. A recent filing unveiled that Coinbase Global receives 50% of the residual revenue generated from these reserves, impacting Coinbase’s share based on the amount of $USDC held on its exchange. This highlights a major crypto win and sets the stage for other new cryptos to explode as the year progresses.