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The Coin Rise 2025-02-12 22:55:07

Coinbase Sees Big Quarter, Can It Keep Growing?

In late 2024, the crypto market soared, and Coinbase (COIN), a leading crypto exchange, benefited greatly. Experts expect Coinbase’s earnings to rise sharply. They expect its 2024 Q4 revenue to reach $1.8 billion, up from $1.26 billion in Q3. Also, they forecast its earnings per share to jump from $0.41 to $1.99, despite plunging by 15% in last November. Even though analysts have slightly different revenue estimates, they all agree that Coinbase had a strong quarter in 2024. Now, the focus shifts to 2025, a year that could shape the company’s future in a fast-changing market. Different Opinions on Coinbase Revenue and Stock Price Results Wall Street analysts have noticed Coinbase’s strong 2024 Q4 performance. Citi, a major financial firm, still recommends buying Coinbase stock and has raised its price target from $275 to $350. Investors are paying attention as Coinbase shares traded at $270 on Tuesday, up 90% from last year. However, not all analysts are fully optimistic. FactSet predicts that the exchange’s Q4 revenue will be $1.8 billion, while Citi estimates $1.7 billion. Although recognizing crypto’s growth, JPMorgan’s Ken Worthington is neutral on Coinbase stock. He expects $1.77 billion in revenue, slightly below the average forecast. The Trump Effect: How Politics Boosted Crypto One big catalyst for Coinbase’s success in Q4 was the U.S. presidential election in 2024 . President Donald Trump’s win sparked a major crypto rally, with experts calling it a “huge boost” for the industry. Coinbase’s trading volume jumped to $195.9 billion in Q4, up from $185.3 billion in Q3. Interestingly, this is its best quarter since 2021. However, it is unclear how long this boost will last. While new regulations could help the crypto industry, it could take time. Because of this, analysts say 2025 may be harder to predict. The Coinbase Revenue Problem Even with strong Q4 results, Coinbase has a big challenge: finding new ways to make money. Currently, 50% of its revenue comes from trading fees, which means it relies heavily on market ups and downs. Retail traders, who pay the highest fees, are not as active as in 2021. Their share of trading volume has dropped to 18%, down from 40%. Crypto research firm Kaiko says this drop in retail trading negatively impacts Coinbase’s earnings. Citi analysts suggest Coinbase should focus more on Real World Asset (RWA) tokenization, smart contracts, Web3, and AI-powered blockchain tools. These areas could potentially bring steady growth to the exchange’s revenue. The post Coinbase Sees Big Quarter, Can It Keep Growing? appeared first on TheCoinrise.com .

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