XRP News Today: XRP Overtakes Ethereum in Coinbase Transaction Revenue for First Time

XRP has surpassed Ethereum in Coinbase’s transaction revenue for the first time, reflecting a significant shift in market dynamics and user preferences. According to Coinbase’s Q2 2025 Shareholder Letter, XRP accounted for 13% of the platform’s transaction revenue, edging out Ethereum, which captured 12% [1]. This marks a pivotal moment for XRP, especially considering its legal challenges in previous quarters, suggesting that recent regulatory clarity and institutional interest have translated into measurable trading activity [2].

Coinbase reported total transaction revenue of $764 million in Q2, with Bitcoin remaining the dominant asset at 34% of the total. However, XRP’s performance highlights growing traction in the altcoin space, particularly among users seeking low-cost, high-speed transactions for remittances and cross-border payments [3]. Analysts attribute the rising adoption of XRP to its efficient transaction model and growing acceptance on major exchanges, including Binance, Coinbase, and Kraken [1].

The broader implications of XRP’s ascent are evident in how users are diversifying their crypto activity beyond the top two assets. In Q2, "other" cryptocurrencies collectively accounted for 41% of Coinbase’s transaction revenue, reflecting a shift in retail trading behavior toward a more diversified portfolio [2]. This trend may be driven by the growing role of stablecoins, with Coinbase noting an increase in average USDC balances on its platform [1].

While Ethereum continues to maintain a strong presence in decentralized finance (DeFi) through staking and total value locked (TVL), XRP’s institutional demand and direct over-the-counter (OTC) trading volume—19% of which comes from direct trades—further solidify its market position [1]. Ripple Labs CEO Brad Garlinghouse emphasized the growing institutional interest in XRP, stating that the token is seeing "substantial shifts in trading volume and liquidity across exchanges" [1].

The shift in transaction revenue also underscores the evolving nature of the crypto market, where regulatory developments and platform dynamics can rapidly influence asset performance. Following the Fed’s rate hold in Q2, XRP, along with other altcoins like Dogecoin and Cardano, experienced gains. However, market sentiment later turned bearish, with Bitcoin and Ethereum facing a pullback due to declining large transactions and trader liquidations [4].

Coinbase’s Q2 earnings highlighted broader industry challenges. Although the firm reported $1.4 billion in net income, transaction revenue fell below forecasts, with $764.3 million compared to the expected $810 million [2]. This discrepancy was attributed to shifting market conditions and weaker trading volumes. Despite these headwinds, XRP’s outperformance demonstrates the potential for alternative cryptocurrencies to gain stronger adoption on major exchanges as users seek more efficient transaction options.

The growing influence of XRP is also being felt in the Asia-Pacific region, particularly in Japan and South Korea, where increased trading activity and institutional interest have driven higher liquidity and volume [1]. While Ethereum remains a key player in DeFi, XRP’s ability to capture transaction revenue on leading exchanges highlights its unique appeal and long-term resilience during periods of market volatility [3].

Sources:

[1] Coinbase. Q2 2025 Shareholder Letter. https://investor.coinbase.com/files/doc_financials/2025/q2/Q2-2025-Shareholder-Letter.pdf

[2] Inkl. Coinbase Q2 Earnings Highlights: Sales, EPS Miss, 40%. https://www.inkl.com/news/coinbase-q2-earnings-highlights-sales-eps-miss-40-slide-in-trading-volume

[3] Stocktwits. Bitcoin, Ethereum Rebound After Fed Rate Hold. https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-ethereum-rebound-after-fed-rate-hold-xrp-doge-ada-lead-altcoin-gains/choLJJvR56o

[4] AOL.com. Bitcoin, Ethereum, XRP, Dogecoin Under Pressure As. https://www.aol.com/bitcoin-ethereum-xrp-dogecoin-under-132642402.html