Let's briefly talk about Coinbase's financial report As expected, Coinbase's financial report for the fourth quarter of 2024 was excellent, exceeding market expectations by about double. The total revenue for the fourth quarter was $2.271 billion, an 88% increase compared to the previous quarter. This data is so terrifying, it also illustrates the difference between the pre election and post election market, and once again proves the help of the election to the cryptocurrency field, especially this time, officials from the president to the vice president, as well as SEC and CFTC, are all supporters of cryptocurrency. 1. Comparison of Coinbase's returns In the fourth quarter, Coinbase alone generated trading revenue of $1.556 billion, an increase of 172% compared to the previous quarter. In the third quarter, there was a lot of garbage, but in the fourth quarter, there was a lot of hype. The trading volume of retail investors was 1.347 billion US dollars, accounting for 86.57% of the total trading revenue. This shows the FOMO enthusiasm of retail investors in the fourth quarter. Of course, friends should be more curious about whether this enthusiasm can be maintained in the first quarter of 2025. 1.1 Coinbase Q1 2025 earnings spoiler You can give some early spoilers. As of the early morning of February 12, 2025 Beijing time, Coinbase's first quarter earnings were $750 million, which is almost half of the time and around half of the earnings. If user sentiment does not continue to improve, it will be difficult to surpass the quarter on quarter earnings in the first quarter of 2025. However, it can be seen that even though it is still a garbage time, investors' enthusiasm is still good. So many friends may wonder, even though they see Bitcoin falling, where are so many transactions? 1.2 Coinbase's 2024 Revenue Distribution There is an interesting data here. According to the fourth quarter data, BTC ranks first in terms of total transaction volume and transaction revenue, accounting for 27% of the total. This is also expected. However, XRP ranks second in terms of transaction revenue, accounting for 14% of the total revenue, but it is only in the fourth quarter. The other three quarters and years are not on the list. On the contrary, ETH, which is disliked by everyone and disliked by dogs, achieved a trading volume and profit of 10% in the fourth quarter, ranking second on the comprehensive list. Another SOL, which has always been favored, has its trading volume classified as other, but its trading profit is not displayed because it accounts for less than 10% of the total proportion. If we look at the total data for 2024, Bitcoin's trading volume is 32% of the total, and its revenue is 30% of the total trading revenue, ranking first. Ethereum's trading volume is 12% of the total, and its revenue is 13% of the total trading revenue, ranking second. USDT's trading volume is 13%, slightly higher than ETH, but USDT is classified as other in terms of trading revenue. Through this data, although many friends are unwilling to believe it, it is true that American investors still love investing in ETH. Of course, the trading volume of ETH has been declining in 2024, from 13% in the first quarter, 15% in the second quarter, 15% in the third quarter, to 10% in the fourth quarter, and the trading contribution has also dropped from 15%, 17%, 16% to 10%. Therefore, although ETH's trading volume and fees still rank second in Coinbase, the proportion has been decreasing, but there is currently no target to replace ETH. Is there comparability between retail and institutional trading? As mentioned in the financial report earlier, retail investors contributed 86.57% of the total trading volume and contributed $1.347 billion in the fourth quarter of 2024, while professional institutions only provided $141 million in revenue. However, interestingly, in the fourth quarter, retail investors provided $94 billion in trading volume, while institutions provided $345 billion in trading volume. So although institutions provide a large amount of trading, Coinbase's main revenue still comes from retail investors, probably due to the difference in transaction fees. 2. Subscription service This is a very interesting idea. Coinbase has launched the Coinbase One service, specifically because this service is very good. I have bought it myself. Although there are several features, the main ones are three. One is to increase the USDC yield (without staking) to 4.5% (4.5% for the first $30000, returning to normal after $30000), and 4% (I can't remember if it's 3.5% or 4%) if there is no subscription. The other is that there is no handling fee for monthly trading volume (spot) within $10000 (new currency) (not applicable to professional trading). These two features are actually particularly suitable for ordinary novice users, with low trading volume and no need for complex trading functions. At the same time, they can also increase profits. The cost is nearly $300 (new coins) per year, with discounts in the first year. In fact, I think many exchanges can use this method to provide users with additional support. The most important one among them should be the third one. If the first two features are suitable for newcomers, the third feature is to provide a monthly gas subsidy worth 10 USDC on BASE. Although 10 USDC may not seem like much, it is 120 USD per year, which is already 40% of the subscription fee. In addition, there are additional benefits and dedicated customer service, making the cost-effectiveness quite high. So Coinbase One's subscription service will generate $2.3 billion in revenue in 2024, which is about double the amount in 2023. 3. Stablecoins and blockchain profits As we all know, Coinbase is a partner of USDC and has made decent income by issuing USDC. In the fourth quarter, stablecoin revenue decreased by 9% month on month to $226 million, but the annual revenue increased by 31% year-on-year to $910 million. Coinbase believes that the main reason for the decline is due to lower effective interest rates and the impact of new participants entering the USDC ecosystem, which offset the revenue. The blockchain reward revenue in the fourth quarter was $215 million, an increase of 39% compared to the previous quarter. One of the main reasons is the overall price increase of cryptocurrencies and the increase in staking income, such as SOL. So for exchanges with large asset volumes, the returns provided by blockchain rewards (such as staking) are still very considerable. 4. Summary Although what I have said is only a part and there are still expenses that have not been written, they are not very meaningful. According to standard data, overall Coinbase's total revenue in 2024 is good, with a net revenue of $3.348 billion, which is about 3.5 times that of 2023. The net revenue in the fourth quarter was $1.289 billion, which is higher than the total of the second and third quarters. So the financial report is indeed good. Of course, many friends may ask why the financial report is so good, but it fell at the opening after the report. Even though Bitcoin has risen to $98000, Coin is still down nearly 7%. This should be Sell The News. Yesterday, because the financial report had good expectations, it opened short and opened high, rising all the way. Even though it has fallen so far, the price is still higher than when it closed on Wednesday. So for some US stocks, we do need to pay attention to this issue. In fact, Coin has been in this situation more than once. Many times, it is expected that the financial report will be good, but it falls at the opening, almost all because it rose well the day before the financial report was released, and there were a large number of investors selling off after the report was released. Another important reason this time is that the price of Bitcoin is not very good, and many traditional investors are not optimistic about the future trend of cryptocurrency. PS： As of the end of 2024, Coinbase has 3772 full-time employees This tweet is sponsored by @ ApeXProtocolCN | Dex With Apex