Originally published on: December 17, 2024
The latest data reveals that in 2024, Coinbase, a leading Bitcoin and cryptocurrency exchange, has outperformed Nasdaq in terms of revenue, with figures showing a substantial $5.75 billion in the past 12 months. This surge in revenue signals a significant transformation in the crypto markets during the fourth quarter of the year, with the sector now competing head-to-head with Wall Street for dominance.
According to Jamie Coutts, chief crypto analyst at Real Vision, Coinbase’s exchange revenue currently ranks fifth globally, surpassing the likes of Nasdaq and CBOE. Coutts expressed astonishment at the rapid growth of the crypto sector, emphasizing that Coinbase now accounts for 11% of global exchange revenue.
The comparison between centralized exchanges (CEX) like Coinbase and decentralized exchanges (DEX) clearly indicates that crypto is outpacing traditional finance (TradFi), growing at a rate 2.5-4 times faster. As we look towards 2025, the battle between traditional finance and DeFi protocols intensifies, with the latter potentially outperforming major cryptocurrencies like Bitcoin and Ether (ETH).
Coinbase’s stock performance has been exceptional, doubling in value over the past three months, surpassing even the gains seen in Bitcoin. The influx of institutional interest in BTC is evident, with recent data showing over $600 million in net inflows to US spot Bitcoin ETFs. This trend further validates the growing prominence of cryptocurrencies in the financial markets.
As the crypto sector continues to evolve, regulatory scrutiny and market dynamics will play a crucial role in shaping its future. Despite the inherent risks associated with investments in this space, the potential for higher returns and innovative growth opportunities cannot be overlooked.
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