🟣 COIN gud coin

Whether left curve or right curve, today, COIN hodlers pat themselves on the back

Coinbase investors are seeing green this morning as yesterday’s earnings report after the closing bell showed revenues were up 41% from the prior quarter, to $954 million.

Shares gapped up to open trading at $190, just above the prior December peak.

The bull thesis for Coinbase relies in part on growing revenue not associated with trading volume, like subscription and services. That includes revenues from stablecoins and custodial fees as well as its Base rollup.

Trading fees should be expected to decline, argues Sandeep Rao, senior researcher at Leverage Shares, in part as volume shifts in favor of the new bitcoin ETFs and competition between exchanges ramps up.

On the other hand, one would expect trading volumes in a bull market to be significantly higher overall, and there’s little sign of retail traders rushing into the crypto markets yet.

Speaking of Base and earnings, in a fun gimmick, Coinbase superfans can mint a quarterly earnings NFT collectable at nft.coinbase.com/mint.

— Macauley Peterson (X: @yeluacaM | Farcaster: @Macauley)

Breaking down Coinbase earnings.

For now, “transaction-based” revenue is still the core of this Coinbase earnings creature. Its future profitability will depend on how fat it can grow its other tentacles / business lines.

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community and more, with 2023 being the fourth-largest year for crypto venture capital.

Ethereum’s Dencun upgrade is scheduled for March 13. It will introduce several high impact changes, with the most notable being EIP-4844. As a result, gas costs on layer-2s will drastically decrease, and the Ethereum network will be one step closer to its end state of danksharding. Dencun should serve as a fundamental catalyst for ETH and layer-2 assets.

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally.

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders.

The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.