In the first quarter of 2024, cryptocurrency exchange Coinbase saw a significant increase in trading volumes, nearly doubling compared to the fourth quarter of last year.
On the back of this success, Coinbase shares closed at $262 on Thursday.
"Coinbase is more than just a cryptocurrency exchange; its ancillary business continues to gain momentum," experts at JMP Securities said in their findings.
The JMP study cited that Coinbase's spot trading volume averaged approximately $3.3 billion per day in the first quarter, double the volume seen in the fourth quarter of last year. The recently launched derivatives platform is also showing strong scaling.
Amid the launch of new crypto ETFs, Coinbase is looking to expand its participation in their development, Coindesk reported.
Coinbase's new capabilities include participating in real asset tokenization, specifically a partnership with Blackrock, and expanding its payment capabilities with stakable coin issuer Circle.
Meanwhile, Coinbase continues to partner with companies in the TradFi space, looking to expand by adding cryptocurrency assets.
The launch of spot Bitcoin ETFs has pushed the crypto market into an active phase and become a significant market catalyst. Nearly $25 trillion of traditional financial assets haven't even hit the market yet, but the company is optimistic about the opportunity.
It's also worth noting that Base's success and rapid adoption in the crypto ecosystem is contributing to Coinbase's success. Base's meteoric rise has been impressive, with a record total blockchain value (TVL) of $794 million. This represents a weekly growth of 19.62%, outpacing Solana's growth of 10.54%. However, Base lags behind Solana in terms of TVL volume, at $4 million.
For Coinbase, Base's explosive growth presents both an opportunity and a challenge. Coinbase is innovating with its Smart Wallet, designed for a massive user base of 100 million people. This wallet is designed to streamline interactions with decentralized applications (dApps).
