|

Coinbase profits plunge by 75% in Q3 as Bitcoin, Ethereum trading volume falters

  • Coinbase has reported a 75% decrease in net income in the third quarter of 2021.
  • This number represents a massive dip in profits compared to Q2, but a 500% increase compared to Q3 2020.
  • Coinbase CFO Alesia Haas stated that trading volume across the crypto spot market has declined significantly in the past quarter.

Leading cryptocurrency exchange Coinbase witnessed its total net revenue of $1.235 billion in Q3, resulting in a 75% drop compared to the previous quarter. The numbers in the third quarter fell 30% short of analyst estimates of $1.614 billion. However, the crypto firm stated that it had been a “strong quarter” for the firm. 

Crypto spot trading volume declined in Q3

The largest cryptocurrency exchange based in the United States by trading volume, Coinbase revealed in a report that its third-quarter earnings reached $406 million. This number represents a substantial drop from its record Q2 when the firm posted a net income of $1.6 billion. However, the Nasdaq-listed firm still saw a 500% increase over Q3 2020.

The cryptocurrency company posted revenue of $1.235 billion in the third quarter, falling substantially below analyst estimates, according to FactSet of $1.614 billion. 

According to Coinbase CFO Alesia Haas, trading volume across the entire cryptocurrency spot market has declined quarter-over-quarter in Q3. 

Comparatively, payments firm Square which allows Bitcoin trading revealed a 23% drop in Bitcoin revenue in the third quarter, highlighting that the leading cryptocurrency’s price remained stable during the period. Robinhood reported its crypto revenue nosedive 78%. 

Leading cryptocurrencies, Bitcoin and Ethereum no longer dominated the majority of trading volume or transaction revenue on Coinbase, as the digital asset firm has expanded to add new coins on the platform. BTC and ETH revenue dropped from 26% in Q2 each to 21% and 22% in Q3, respectively. 

Other altcoins accounted for 57% of the transaction revenue, and 59% of the trading volume. 

Haas added that the digital asset exchange will continue to support all legal assets, as the firm would not know precisely which coins customers are going to adopt in the future. 

However, Coinbase stated that this has been a “strong quarter” for the firm, as the company is gearing toward deeper investor engagement on the platform. The crypto exchange has been developing new products including its upcoming NFT marketplace.

The report encouraged Coinbase investors to steer the focus on the long term as opposed to quarter-to-quarter.

Author

Sarah Tran

Sarah Tran

Independent Analyst

Sarah has closely followed the growth of blockchain technology and its adoption since 2016.

More from Sarah Tran
Share:

Editor's Picks

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.

Bitcoin, Ethereum, and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Ethereum Price Forecast: FG Nexus continues distribution amid signs of returning risk-on sentiment

FG Nexus, once dubbed an Ethereum treasury firm, resumed offloading the top altcoin on Wednesday, distributing 7,550 ETH, according to data from smart money tracker EmberCN.

Top Crypto Gainers: Stable and Decred rally, Pippin approaches record highs

Altcoins, such as Stable, Decred, and Pippin, are extending gains so far this week, defying the risk-averse conditions in the broader cryptocurrency market. Stable and Pippin are near record high levels, while Decred extends its breakout rally above $30.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: Another month of losses, and it’s been five

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.