Ethereum News Today: Coinbase's Base Blockchain Becomes the "AWS of Crypto" Infrastructure

Coinbase Global, Inc. (COIN) delivered a standout third quarter in 2025, with revenue surging 58% year-over-year to $1.9 billion, surpassing Wall Street expectations and reigniting investor confidence in the crypto exchange's long-term strategy, according to a Coindesk report. The U.S.-based platform reported transaction revenue of $1.0 billion, doubling from $573 million in the same period last year, while adjusted EBITDA reached $801 million — a 78% increase from $449 million in Q3 2024. Shares rose 1.5% in post-market trading, though the company cautioned against extrapolating short-term gains in a sector prone to volatility.

The results reflect a broader rebound in crypto markets, with trading volumes hitting $295 billion in the quarter, driven by renewed retail demand and institutional adoption. Consumer transaction revenue rose 30% to $844 million, while institutional revenue more than doubled to $135 million, partly attributed to the acquisition of crypto derivatives platform Deribit, which contributed $52 million in Q3 revenue. Subscription and services revenue also grew 14% to $747 million, with stablecoin-related income accounting for $355 million, bolstered by record USDC balances exceeding $15 billion.

A key highlight was the profitability of Coinbase's Layer 2 blockchain, Base, which saw revenue gains from higher Ethereum (ETH) prices and increased transaction volumes despite lower per-fee rates; the network's success has positioned it as a preferred infrastructure for developers and enterprises, aligning with Coinbase's "Everything Exchange" vision. Meanwhile, the company expanded its Bitcoin holdings by 2,772 BTC and 11,933 ETH during the quarter, now custodied assets valued at $1.6 billion, according to a Yahoo Finance report. CEO Brian Armstrong emphasized the strategic accumulation as part of the firm's "Everything Exchange" playbook, which includes expanding crypto payments and tokenized assets.

Wall Street analysts responded favorably, according to The Block, with JPMorgan labeling the quarter a "commanding beat" and William Blair reiterating an "Outperform" rating, projecting Coinbase's ecosystem could reach a $4 trillion market value. Despite trimming its price target to $399 from $404, JPMorgan noted the firm's $11 billion cash reserves and recent acquisitions as catalysts for further growth. Benchmark analyst Mark Palmer highlighted stablecoin revenue and Deribit's integration as "powerful levers" for Coinbase's expansion, while Bernstein analysts described the platform as "the AWS of crypto financial infrastructure."

However, analysts warned of near-term margin pressures. JPMorgan flagged a 12% rise in operating expenses in Q4 due to acquisitions and hiring, and William Blair cautioned that Deribit's integration could temporarily dampen profit margins. Despite these concerns, Coinbase's 45% profit margin in Q3 and diversified revenue streams — including derivatives, staking, and blockchain rewards — have positioned it as a leader in a maturing crypto industry.

Coinbase also signaled optimism for 2026, with CEO Armstrong hinting at a December product event that could include tokenized equities or a Base token launch. The company's strategic bets on AI-integrated blockchain tools and global payment solutions, coupled with a $2 billion share-repurchase program, underscore its ambition to dominate the evolving cryptoeconomy.