The 2024 American presidential election rekindled interest in cryptocurrencies, notably taking advantage of Coinbase. With an increase in trading volumes and an influx of institutional investors, the Crypto platform sees its perspectives evolve. However, the drop in retail traders activity poses a long -term profitability.
Coinbase explodes 40 % since the election of Donald Trump!
The American presidential election of November 2024, which saw Donald Trump's victory, rekindled interest in cryptos, leading to a significant increase in trading volumes on the main exchange platforms. Coinbase particularly benefited from this dynamic.
According to a recent Kaiko reportthe weekly trading volumes on the Crypto platform reached their highest level in two years in the fourth quarter of 2024, mainly due to the influx of institutional investors. In addition, Coinbase actions have increased by around 40 % since this victory, a positive trend that could be reflected in the report on the quarterly Coinbase results scheduled for February 13, 2025.
Persistent challenges
Despite this increase, the participation of retail traders, which generate the highest costs, has remained modest. Their share of the total volume increased from 40 % in 2021 to only 18 % in 2024. In response to this situation, Coinbase has expanded its offers to include services such as blockchain rewards, childcare costs and interest generated by the 'USDC. These Crypto subscriptions and services have represented an increasing share of its total income.
However, these sources of income remain closely linked to the general activity of the Crypto market. For example, in the third quarter of 2024, Coinbase revenues from blockchain awards decreased by 16 %, mainly due to the drop in prices of Ether (ETH) and Solana (soil).
Coinbase is therefore at a strategic turning point, carried by the momentum of institutional investors, but slowed down by the drop in retail traders. The election of Donald Trump has certainly rekindled the optimism of the Crypto market, but the platform will have to innovate and adapt to regulatory developments to ensure its long -term growth, as demonstrated by its recent innovation “Gmail for Bitcoin”
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