XRP Outshines Ethereum in Coinbase Retail Revenue for Q2 2025

Move over, Ethereum—XRP just stole the retail spotlight on Coinbase.

In a twist that'll have maxis seething, the 'banker coin' quietly dominated Q2 retail revenue. Who needs DeFi fluff when old-school liquidity pumps numbers?

Funny how institutional darling ETH got out-traded by the SEC's favorite punching bag. Maybe compliance isn't so boring after all.

XRP Gains Momentum After Legal Clarity

One of the major reasons behind XRP’s Q1 success was the legal progress Ripple made with the SEC. In the first quarter, the U.S. Securities and Exchange Commission withdrew its appeal in the Ripple case, effectively confirming that XRP’s secondary-market sales are not securities.

Juan Leon, a research analyst at Bitwise Asset Management, told Decrypt that this legal clarity helped boost XRP’s price and attracted retail traders. “That legal win sparked a rally in XRP’s price and retail interest in trading the token,” he said.

XRP’s appeal also lies in its low transaction costs and position as one of the largest cryptocurrencies by market cap, making it a preferred choice for value-focused retail investors.

Ethereum Regains Ground Through Institutions

While XRP saw retail-driven momentum, Ethereum made a comeback in Q2, thanks largely to institutional interest. Even though Ethereum’s retail trading volume fell behind XRP on Coinbase, its overall market performance improved.

Leon noted that ETF inflows and purchases by Ethereum treasury companies helped drive up ETH’s price. “We believe strong institutional demand for ETH will carry into the second half of the year,” he said.

Ethereum’s price grew by 38% in Q2, compared to XRP’s 11% gain. This growth was supported by the broader narrative around tokenization, as well as increasing activity in decentralized finance (DeFi) and stablecoins on Ethereum’s network.

Austin King, co-founder of Omni Network, also pointed to recent U.S. legislation called the GENIUS Act, which could give platforms like Ripple a more defined role in stablecoin regulation. However, he emphasized that the act may not significantly impact XRP in the NEAR term.

Shifting Retail Preferences on Coinbase

Throughout 2024 and early 2025, XRP’s share of trading volume on Coinbase steadily climbed. Its Q1 spike came as value-seeking traders took advantage of the clarity around its legal status and relatively low cost.

However, this momentum didn’t last. Leon said that “price momentum subsided in Q2,” while Ethereum regained attention from retail traders due to its growing ecosystem activity.

Stablecoin usage and DeFi development on Ethereum contributed to a broader narrative shift that favored ETH in Q2. According to Leon, “Retail traders shifted back toward Ethereum, where stablecoin activity and DeFi usage were accelerating.”

Narratives and Price Action Drive Sentiment

Other analysts agree that changing narratives played a key role in the shift between XRP and Ethereum.

Hank Huang, CEO of Kronos Research, said XRP’s Q1 rise was driven by its legal clarity and appeal to cost-conscious traders. But Ethereum’s return was helped by ecosystem updates and ETF optimism. These developments helped restore “investor confidence and liquidity” in Ethereum, he explained.

Huang added that flows from Ethereum ETFs are boosting ecosystem strength, leading to more developer activity and user interest. However, he pointed out that retail activity on Coinbase still tends to follow price trends and major headlines, rather than sustained engagement.

Min Jung, a senior analyst at Presto, added that Ethereum’s weaker performance in Q1 was partly due to low ETH/BTC ratios and reduced retail interest. But as digital asset treasuries began to allocate more capital to Ethereum, sentiment started to improve.

“Ethereum was one of the most unloved assets in crypto” at the time, Jung said. But the narrative began to shift in its favor in Q2, helping it recover both in price and public attention.

Conclusion: XRP vs ETH – What’s Next?

The battle between XRP and Ethereum on platforms like Coinbase shows how quickly retail sentiment can shift in crypto markets. While XRP briefly overtook Ethereum in retail revenue due to legal clarity and affordability, Ethereum’s ecosystem strength and institutional demand helped it rebound in Q2.

As the second half of 2025 unfolds, both tokens are likely to remain closely watched by investors. XRP’s appeal among retail users remains strong, while Ethereum continues to benefit from deeper institutional involvement and broader blockchain adoption trends.