Coinbase May Be Outperforming the Stock Market

If Nasdaq looks like a sure bet right now as it beats the other US indices, Coinbase should look even better thanks to its gains this year, fueled by high transaction fees.

Coinbase stock is on the rise.
Coinbase is raking in the cash right now.

Coinbase is actually making more than Nasdaq this year because of those fees. The transaction revenue for the year for the cryptocurrency exchange is $5.75 billion. Compare that to the stock market index Nasdaq, which “only” brought in $4.54 billion” over the last 12 months. This makes them the leading crypto exchange and one of the leading exchanges for any market and any commodity. They do fall behind the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE) in total revenue, though. Not of those made close to $10 billion this year.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

Data culled from Coutts banking service says that $51.27 billion in revenue comes from all stock exchanges, crypto exchanges and digital asset exchanges. For Coinbase to be pulling in more than 10% is astounding and certainly sets them apart in the word of monetary exchanges. The closest comparison we can make would be to compare them to PayPal, which has taken a lion’s share of the digital transfer and payment market, outstripping the competitors by a large margin.

Coinbase does not beat many of its competing exchanges in total number of transactions, however, the fees they charge are high enough to push them over the top when it comes to looking at just the revenue figures. If the metrics were the number of transactions or overall popularity based on the number of users, then Coins might not come out on top, but the hard revenue figures make it worth looking at for investors.

Coinbase Stock Outlook

Coinbase is a publicly traded company, under the stock symbol COIN, and they are currently selling shares at $264. That is up by 69% from the starting price of $156 for the beginning of 2024. The company has done remarkably well this year, and not just on the stock exchange.

Most of their progress can be attributed to the surge in crypto trading that occurred late in the year, following the November US presidential elections. The company’s stock price soared from $186 to $324 per share once the election results came in and Bitcoin began trading at a record high.

We would recommend Coinbase as a company to invest in since Bitcoin and other cryptos are expected to climb once more as soon as Donald Trump is officially in office, and then again once he starts to enact some of the pro-cryptocurrency plans he has been working on. 

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments