Coinbase Set for Strong Earnings as Trading Volume Surges

Coinbase Global, the leading cryptocurrency exchange, is expected to report strong earnings for the recent quarter, driven by a surge in trading volume. The company's Base network, launched in March 2023, has seen a significant increase in daily trading volume, hitting a record high of $356 million on Wednesday, March 18, 2025. This growth can be attributed to the introduction of Dencun, an Ethereum upgrade that slashed Layer 2 transaction fees, making Base a cost-effective Ethereum option.



The network's total value locked (TVL) also reached an all-time high of $745.3 million, with daily transactions peaking at 1.65 million. Over 129,000 new users joined the platform on Wednesday, March 18, 2025, according to Dune analytics. This growth has positioned Coinbase's Base network ahead of competitors like Arbitrum and Optimism in terms of on-chain activity.

Coinbase's strong earnings performance is expected to be driven by increased trading volume, user growth, and international expansion. The company's balance sheet has also strengthened, with total USD resources growing by 5% quarter-over-quarter to $8.2 billion. Coinbase's subscription and services revenue is projected to exceed $2 billion in 2024, up from $1.4 billion in 2023.

Coinbase's earnings call is expected to provide more insights into the company's financial performance and guidance for the future. The company's strong earnings performance and growth prospects are likely to be reflected in its stock price, which has been volatile in recent months but has shown signs of recovery.

In conclusion, Coinbase's strong earnings performance is expected to be driven by a surge in trading volume, user growth, and international expansion. The company's balance sheet has also strengthened, and its subscription and services revenue is projected to grow significantly. Coinbase's earnings call is expected to provide more insights into the company's financial performance and guidance for the future.