In a recent report by a crypto analyst from the private bank Coutts, Coinbase has surpassed the Nasdaq and the Stock Exchange of Hong Kong in terms of transaction revenue. Over the past 12 months, Coinbase generated $5.75 billion in transaction revenue, compared to $4.54 billion for the Nasdaq and $2.67 billion for the HKEX. These numbers are influenced by the fees exchanges charge per transaction, not just the number of transactions or popularity of the platform. All major crypto, stock, and commodity exchanges worldwide generated approximately $51.27 billion in transaction revenue.
While Coinbase’s transaction revenue growth is impressive, it still falls short of the world’s largest exchanges. The London Stock Exchange generated $10.82 billion in transaction revenue, while the Intercontinental Exchange, which operates the NYSE, remains ahead with $9.16 billion. Despite this, CEO of MANSA Finance, Mouloukou Sanoh, believes Coinbase has the potential to continue overtaking traditional exchanges in revenue, possibly reaching the third spot in total transaction revenue by 2025.
Sanoh predicts that it may take between 10 to 20 years before Coinbase surpasses the Nasdaq in terms of overall trading volume. He anticipates that Coinbase’s growth potential lies in expanding internationally, particularly in regions like Latin America, Africa, and Europe. With the new administration, Coinbase may become more aggressive in overseas expansion, leading to increased revenue and trading volume.
In Q3 of 2024, Coinbase sales fell to $1.2 billion from $1.45 billion in the previous quarter. Despite this, the company reported a $75 million profit, up from $2 million the previous year. Coinbase’s potential for growth in international markets and its ability to adapt to changing trends could help it become the largest global exchange by volume and trading revenue in the future. These developments could position Coinbase as a strong competitor to traditional market giants like the Nasdaq.
