Anticipated XRP Shock Unearthed in Coinbase's Financial Results
In a notable shift in cryptocurrency trading dynamics, Ripple's XRP has overtaken Ethereum to secure the second spot in Coinbase's transaction revenue in Q2 2025. Bitcoin, as usual, led the pack with a 34% share.
Coinbase's decision to reinstate XRP trading in July 2023, following its halt in early 2021 due to the SEC's lawsuit against Ripple, played a significant role in this development. The resumption of XRP trading on the platform renewed its availability and popularity, likely boosting trading activity and revenue.
Besides the re-listing, improved regulatory clarity around XRP in the U.S. and growing institutional demand contributed to the surge in XRP's trading revenue. These factors translated into higher trading revenue and increased futures trading, as noted in the Q2 report and related market analysis.
Despite a smaller share of overall trading volume than Ethereum, XRP generated disproportionately higher revenue. This discrepancy can be attributed to trading fee structures, increased trading frequency, or more active derivatives trading related to XRP on Coinbase.
Coinbase's stablecoin revenue also saw a significant increase, growing by 44% year-to-date compared to the same period last year. Despite a decline in stablecoin pair trading following a pricing adjustment, the overall transaction revenue dynamics shifted in a way that favored XRP relative to Ethereum.
In other developments, Coinbase now holds a total of $1.3 billion worth of Bitcoin, making it one of the top 10 largest corporate holders of the cryptocurrency. The company's crypto treasury also includes $200 million worth of other tokens. However, no specific information about the composition of Coinbase's crypto treasury in Q2 2025 or the six-month period was provided.
It's worth noting that last year, XRP's share of transaction revenue was below the reporting threshold. But in the six-month period, XRP had a 16% share, while Ethereum had an 11% share.
Despite the positive developments, Coinbase reported a $764 million worth of revenue tied to transactions in Q2 2025, slightly below analysts' estimates. The growth in Coinbase's stablecoin revenue occurred despite the Fed implementing 100 basis points of rate cuts since then.
In conclusion, the resurgence of XRP on Coinbase post-relisting, coupled with favourable regulatory developments and strong institutional and derivatives market interest, enabled XRP to surpass Ethereum in generating trading revenue in Q2 2025, despite trading volume differences.
[1] Coinbase Q2 2025 Report [2] Market Analysis: Coinbase's Q2 2025 Performance [3] Regulatory Update: XRP in the U.S. Market
- The surge in XRP's trading revenue on Coinbase was, in part, a result of the platform's decision to reinstate XRP trading in July 2023, which renewed its availability and popularity, likely boosting trading activity.
- Besides the re-listing, improved regulatory clarity around XRP in the U.S. and growing institutional demand also contributed significantly to the rise in XRP's trading revenue.
- In Q2 2025, despite a smaller share of overall trading volume than Ethereum, XRP generated disproportionately higher revenue, which can be attributed to trading fee structures, increased trading frequency, or more active derivatives trading related to XRP on Coinbase.
- The growth in Coinbase's stablecoin revenue, which saw a significant increase of 44% year-to-date compared to the same period last year, occurred despite the Fed implementing 100 basis points of rate cuts since then.
