Coinbase’s 2024 financial performance marks a pivotal year of growth, innovation, and market leadership in the cryptocurrency industry. With annual revenue nearly doubling to $6.564 billion** and fourth-quarter revenue hitting a three-year high of **$2.27 billion, the exchange solidified its position as a dominant force in digital asset trading and financial services. This surge was fueled by heightened crypto market activity, regulatory optimism, and strategic product expansion.
Below is a comprehensive breakdown of Coinbase’s 2024 financial results, including key revenue drivers, cost structure, and forward-looking indicators shaping its trajectory in 2025.
Record-Breaking Annual and Quarterly Performance
2024 proved transformative for Coinbase, driven by macro-level shifts in the crypto landscape. The launch of spot Bitcoin ETFs in early 2024 and a pro-cryptocurrency political environment in the U.S. significantly boosted investor confidence, leading to increased trading volumes and broader adoption.
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Key Full-Year Highlights (2024):
- Total Revenue: $6.564 billion (+109% YoY)
- Net Income: $2.6 billion
- Adjusted EBITDA: $3.3 billion
- Trading Volume: $1.2 trillion (+148% YoY)
- Fully Diluted Shares: 286.5 million
- USD Liquidity: $9.3 billion (including cash, cash equivalents, and USDC)
The fourth quarter alone contributed over 30% of annual revenue, with Q4 revenue reaching $2.27 billion—an 88% increase from Q3. This marked the highest quarterly revenue since 2021, reflecting strong demand across retail and institutional segments.
Revenue Streams: Trading Dominates, Services Expand
Coinbase’s revenue model remains anchored in trading but is rapidly diversifying through subscription and service offerings.
Trading Revenue: Fueling Growth
In 2024, trading revenue totaled $4 billion, up 162% year-over-year, driven by:
- Increased market volatility
- Rising cryptocurrency prices
- Regulatory clarity expectations
- Expansion of listed assets
Retail Trading
Retail trading volume hit $221 billion for the year (+195% YoY), with Q4 volume surging to $940 billion—a 176% increase from Q3. Retail trading revenue in Q4 reached $1.3 billion, up 179% quarter-over-quarter.
This growth was amplified by Coinbase’s addition of 13 new assets in Q4, including high-demand memecoins like PEPE and WIF, which attracted younger, active traders. These additions, combined with improved onboarding experiences, led to a 24% sequential increase in Monthly Transacting Users (MTUs).
Institutional Trading
Institutional trading volume for the year reached $941.2 billion** (+139% YoY), with Q4 volume hitting $3.45 trillion—a 128% increase from Q3. Institutional trading revenue in Q4 was $141 million**, up 156% QoQ.
Coinbase outperformed broader market trends due to enhanced prime brokerage services, tighter spreads, and its role as a primary custodian for Bitcoin ETFs.
Other Trading Revenue
Other trading revenue, including income from Base network sorter fees, reached **$68 million** in Q4 (+99% QoQ). Despite rising ETH prices and transaction demand, Coinbase maintained an average transaction cost below $0.01—underscoring its commitment to scalability and low-cost access.
Subscription and Services: The Diversification Engine
Coinbase is actively reducing reliance on volatile trading income by expanding its subscription and services segment, which generated $2.3 billion in 2024—up 64% YoY.
Q4 Subscription & Services Revenue: $641 Million (+15% QoQ)
Stablecoin Revenue
Stablecoin revenue for the full year reached **$910 million** (+31% YoY), with Q4 generating $226 million (–9% QoQ). The decline in QoQ was offset by strong annual growth, driven by:
- Expansion of USDC market cap
- Increased integration of USDC across Coinbase products
USDC emerged as the fastest-growing major stablecoin in 2024, benefiting from Circle’s partnership and Coinbase’s distribution power.
Blockchain Rewards Revenue
Blockchain rewards revenue hit $215 million in Q4 (+39% QoQ), driven by:
- Rising crypto asset values
- Higher protocol reward rates (notably Solana)
- Continued staking inflows
This segment reflects growing user engagement in proof-of-stake ecosystems and decentralized finance (DeFi).
Interest & Financing Revenue
Interest and financing revenue reached $66 million in Q4 (+3% QoQ), primarily from Prime Financing. Loan balances peaked after the U.S. election due to increased ETF-related trade financing and bilateral lending activity.
However, lower interest rates on fiat custody balances partially offset gains, despite a 7% increase in average custodied fiat ($5.1 billion).
Custody Fees
Custody fee revenue grew to $43 million** in Q4 (+36% QoQ), driven by rising BTC prices and inflows—especially from ETF issuers relying on Coinbase as a primary custodian. Total Assets Under Custody (AUC) reached **$220 billion by year-end.
Coinbase One & Other Services
Other subscription revenue surged to $91 million (+56% QoQ), with Coinbase One being the primary growth driver. The subscription service offers zero fees, insurance, and staking benefits, enhancing user retention and lifetime value.
Operating Expenses: Scaling Responsibly Amid Growth
Total operating expenses for 2024 reached $4.3 billion (+30% YoY), reflecting strategic investments in technology, compliance, and global expansion.
Q4 Operating Expenses: $1.2 Billion (+19% QoQ)
| Category | Q4 Expense | Change |
|---|---|---|
| Transaction Expenses | $317M | +85% QoQ |
| Technology & Development | $369M | –2% QoQ |
| General & Administrative | $363M | +10% QoQ |
| Sales & Marketing | $226M | +37% QoQ |
Transaction expenses rose due to higher blockchain fees and reward payouts (especially on BTC and ETH networks). Meanwhile, sales and marketing costs increased due to:
- Performance-based marketing campaigns
- USDC incentive programs ($80M, +29% QoQ)
- Policy advocacy efforts
Despite rising costs, Coinbase maintained strong profitability, with net income reaching $1.3 billion in Q4 alone.
Strategic Outlook for 2025: Beyond Trading
Coinbase is aggressively pursuing revenue diversification to insulate against market cycles.
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Key 2025 Projections:
- Q1 2025 Transaction Revenue: ~$750 million (as of February 11)
- Sales & Marketing Expenses (Q1): Expected between $235M–$375M
- Tech & Admin Expenses: Forecasted at $7.5B–$8B annually
- Net Profit Growth: Expected to slightly exceed Q4 2024 levels
CEO Brian Armstrong emphasized Coinbase’s “grand vision” to make USDC the world’s first global stablecoin, leveraging its user base, regulatory compliance, and international footprint.
The company also anticipates continued growth from:
- Base ecosystem expansion
- Coinbase One subscriber growth
- Global market penetration
- Regulatory clarity post-election
However, marketing efficiency remains sensitive to crypto price movements, creating variability in ROI across paid channels.
FAQ: Understanding Coinbase’s 2024 Success
What drove Coinbase’s revenue surge in 2024?
The primary drivers were the approval of spot Bitcoin ETFs, rising crypto asset prices, increased market volatility, and expanded product offerings like USDC staking and Coinbase One.
How diversified is Coinbase’s revenue now?
While trading still accounts for about 68.5% of total revenue, subscription and services now represent a growing 31.5%, up from just over 20% in previous years—showing meaningful progress toward diversification.
Is Coinbase profitable?
Yes. In 2024, Coinbase reported **$2.6 billion in net income** and achieved positive EBITDA across all quarters. Q4 alone generated $1.3 billion in profit.
What role does USDC play in Coinbase’s strategy?
USDC is central to Coinbase’s long-term vision. Through a revenue-sharing agreement with Circle, USDC growth directly boosts stablecoin revenue and supports user incentives across products.
How many users does Coinbase have?
While exact MTU numbers weren’t disclosed, the company reported a 24% sequential increase in Monthly Transacting Users in Q4—indicating strong user engagement growth.
What are the risks ahead for Coinbase?
Key risks include crypto market volatility, regulatory uncertainty outside the U.S., competition from other exchanges, and dependence on asset price cycles for transaction volume.
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Coinbase’s 2024 performance demonstrates that regulated crypto platforms can thrive amid favorable macro conditions and strategic innovation. As it moves into 2025, the focus will remain on scaling non-trading revenue streams, expanding globally, and solidifying USDC’s position as a foundational digital dollar.
With strong liquidity, a clear product roadmap, and increasing institutional trust, Coinbase is well-positioned to lead the next phase of crypto adoption—beyond speculation and into real-world utility.