Coinbase Q1 Earnings Fall Short as Crypto Trading Volumes Decline Amid Market Turmoil

Coinbase Global Inc. reported disappointing first-quarter earnings, with revenue and trading volumes falling short of analyst expectations. The decline highlights the challenges faced by crypto exchanges during periods of market volatility.

Coinbase Earnings, Sales Disappoint as Trading Volume Drops Amid Market Turmoil

Coinbase Global Inc. reported first-quarter revenue of $2 billion, falling short of analyst expectations as crypto trading volumes declined. The figure marks a 12% drop from the prior quarter’s $2.27 billion and misses the Street consensus of $2.1 billion.

Transaction revenue plunged 19% to $1.3 billion, while trading volume slid 10% to $393.1 billion. Earnings per share of $0.24 dramatically underperformed against the $1.93 estimate, reflecting broader market pressures.

The exchange noted Bitcoin reached record highs in January before retreating alongside traditional markets. "Asset volatility increased during the period," the company stated, without elaborating on specific market drivers.

Coinbase Q1 Revenue Falls Short Amid Crypto Market Retreat

Coinbase reported $2 billion in total revenue for Q1 2025, missing Wall Street estimates of $2.12 billion as retail trading activity declined. The crypto exchange’s net income plummeted 94% quarter-over-quarter to $66 million, with earnings per share dropping to $0.26 from $4.84 the previous year.

The disappointing results reflect broader market headwinds, with cryptocurrency valuations retreating throughout the quarter amid macroeconomic uncertainty. Trading volumes across major digital assets including BTC and ETH showed significant contraction during the period.

As one of the few publicly traded crypto exchanges, Coinbase’s performance serves as a bellwether for retail participation in digital asset markets. The sharp decline in metrics suggests cooling investor enthusiasm following 2024’s bull market rally.