Coinbase Surpasses Nasdaq in Transaction Revenue: Analysts Predict Future Growth”

The post Coinbase Surpasses Nasdaq in Transaction Revenue: Analysts Predict Future Growth” appeared first on Coinpedia Fintech News

In a latest X post, Jamie Coutts, a crypto analyst has noted that Coinbase exchange has outperformed two of the world’s largest securities exchanges in terms of transaction revenue. 

Coinbase Surpasses Major Exchanges in Revenues

He noted that while Coinbase recorded $5.75 billion in revenues, the NASDAQ, which hosts major companies like Apple, Google, and Microsoft, and HKEX, the Stock Exchange of Hong Kong recorded $4.54 billion and $2.67 billion respectively over the past 12 months. Coinbase also surpassed the Brazil’s Bolsa Balcão, which generated $1.81 billion.

Notably, these figures are not directly comparable as transaction fees varies across platforms, such as when buying stocks or Bitcoin. According to Coutts data, all major crypto, stock, and commodity exchanges globally generated about $51.27 billion in transaction revenue. 

The London Stock Exchange (LSE) topped the table as it generated $10.82 billion in transaction revenue during the past 12 months. The Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE) as well as numerous futures, debt, and commodities exchanges, was also far ahead of Coinbase with $9.16 billion in transaction revenue.

Still Behind In Volume

However, Mouloukou Sanoh, the CEO of MANSA Finance, a global defi platform remarked that while Coinbase’s transaction revenue surpasses that of many major exchanges, its transaction volume is still behind the NASDAQ. “Coinbase is still significantly lower in terms of volume than all the exchanges listed in Coutts’ data. But because they charge higher fees, that’s where they have higher transaction revenue,” he said.

Nevertheless, he predicts that Coinbase will likely continue outperforming traditional exchanges in revenue, and could also make it to the third spot in total transaction revenue by 2025. He believes it could take 10 to 20 years for Coinbase to surpass the Nasdaq in total trading volume.

A Long Way To Go

“I feel like over the next 10 to 20 years is when we will see crypto exchanges completely flip traditional markets, but it’s still going to take a long time,” he noted. “But I would not be surprised if, at some point after the turn of the decade, Coinbase is the largest global exchange, both by volume and by trading revenue.”

Sanoh believes this is likely due to Coinbase’s potential for growth in Latin America, Africa, Europe, and other areas outside its traditional core market in the U.S. While he believes that Coinbase has a strong presence in the U.S. he also noted that internationally they’ve been quite weak and hesitant to expand. With the new administration, he believes that Coinbase will become more aggressive in overseas expansion, which could drive significant future revenue and volume growth.

Coinbase has much farther to go for it to overtake the NASDAQ in terms of volume as it recorded over $10 billion trading volume in the past 24 hours compared to almost $445 billion for the Nasdaq.

Crypto Sector Poised For Significant Re-rating

The analyst noted that crypto is rapidly surpassing TradFi in several key areas. He also pointed out that CEX and DEXs are growing 2.5-4x faster than TradFi, and DEXs are among the most profitable applications globally. If valued like Coinbase, he foresees that the CEX sector could reach a $749B market cap, compared to TradFi’s $610B.

For 2025, he predicts big trends like TradFi will catch up through CEX acquisitions and more crypto integrations. CEXs may also list on TradFi exchanges and develop their own DEX platforms. The tokenization of real-world assets (RWA) will boost sector valuations, while DeFi could grow 4-5x, with several protocols outperforming major cryptocurrencies. He believes that despite regulatory challenges, the crypto sector is poised for a significant re-rating.