Coinbase Q1 Earnings Face Decline Amid Retail Trading Slowdown

Coinbase, one of the leading cryptocurrency exchanges, is under significant pressure as Wall Street analysts predict a decline in its first-quarter earnings for 2025. The anticipated drop is attributed to a slowdown in retail trading activity, which has historically been a major revenue driver for the platform. Earnings per share (EPS) are projected to fall to $1.93, down from $2.26 in the previous quarter, while revenue is expected to decrease to $2.1 billion. Trading volumes are also forecasted to decline, with analysts estimating $403.8 billion compared to higher figures in prior periods. This downturn reflects broader challenges in the crypto market, including reduced retail participation and volatile asset prices. Despite these headwinds, Coinbase remains a key player in the industry, and its long-term prospects in the evolving digital asset landscape continue to draw attention from investors and analysts alike.

Coinbase Q1 Earnings Expected to Decline Amid Retail Trading Slowdown

Coinbase faces mounting pressure as Wall Street analysts anticipate a miss in its first-quarter earnings report. The crypto exchange’s most profitable segments are likely to bear the brunt of dwindling retail activity. Projections show earnings per share dropping to $1.93 from $2.26 last quarter, with revenue expected to fall to $2.1 billion.

Trading volumes tell a similar story—analysts forecast $403.8 billion versus $439 billion in Q4. J.P. Morgan slashed its EPS estimate to $1.59, citing a 10% decline in Coinbase’s trading volume and a 17% overall slide. The numbers paint a stark contrast to last year’s Q1 performance, when the exchange reported $4.40 EPS and $1.2 billion in revenue.

NY Attorney General Sought SEC Declaration That ETH Is a Security

The New York State Attorney General’s office pressed the U.S. Securities and Exchange Commission to publicly classify Ethereum’s ether as a security during its 2023 case against crypto exchange KuCoin, according to documents obtained by Coinbase. Investor Protection Bureau chief Shamiso Maswoswe explicitly requested SEC intervention via court brief, though conceding the determination wouldn’t be legally decisive in New York’s action.

This behind-the-scenes regulatory pressure emerges as Coinbase releases a trove of SEC communications obtained through FOIA requests. The disclosure highlights ongoing jurisdictional tensions between state and federal regulators regarding crypto asset classification - particularly for Ethereum, the blockchain network underpinning the second-largest cryptocurrency by market capitalization.