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

In a recent revelation shared on X (formerly known as Twitter), renowned crypto analyst Jamie Coutts revealed a fascinating shift in the financial landscape: Coinbase has outperformed traditional financial powerhouses like NASDAQ and the Hong Kong Stock Exchange (HKEX) in transaction revenue. This development underscores the growing influence and dominance of cryptocurrency exchanges in the global financial ecosystem.

Breaking Down the Numbers

Coutts reported that over the past 12 months, Coinbase achieved a staggering $5.75 billion in transaction revenue, surpassing NASDAQ’s $4.54 billion and HKEX’s $2.67 billion. Furthermore, Coinbase also outperformed Brazil’s Bolsa Balcão, which recorded $1.81 billion in the same period. However, it is crucial to recognize that transaction fees can vary significantly between platforms, especially when comparing fees for purchasing stocks to those for cryptocurrencies, such as Bitcoin. According to Coutts, global transaction revenues from major exchanges in crypto, stocks, and commodities reached a massive $51.27 billion during this period.

Traditional Giants Still Lead

Despite Coinbase’s impressive performance, traditional financial giants continue to lead in overall transaction revenue. The London Stock Exchange (LSE) topped the list with $10.82 billion, closely followed by the Intercontinental Exchange (ICE), the operator of the New York Stock Exchange (NYSE), with $9.16 billion.

A Promising Future Ahead

Mouloukou Sanoh, CEO of MANSA Finance, highlighted that Coinbase’s high transaction revenue is primarily due to elevated fees rather than sheer trading volume. He stated, “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.”

A Long Way To Go

Sanoh also emphasized that it might take another 10 to 20 years for crypto exchanges to fully eclipse traditional markets. He remarked, “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. However, 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.”

Furthermore, Sanoh pointed out Coinbase’s potential for expansion beyond the U.S. borders. Although Coinbase has established a strong domestic presence, its global reach remains limited. With anticipated regulatory changes, Coinbase could potentially target markets in Latin America, Africa, and Europe, driving further revenue and trading volume growth. Currently, Coinbase’s 24-hour trading volume of $10 billion is dwarfed by NASDAQ’s $445 billion. Nevertheless, cryptocurrency exchanges are rapidly expanding, with both centralized and decentralized exchanges (CEXs and DEXs) growing 2.5 to 4 times faster than their traditional finance (TradFi) counterparts.

Trends to Watch in 2025

Coutts identified key developments that could reshape the financial sector by 2025:

TradFi-Crypto Convergence: Traditional institutions may acquire centralized exchanges (CEXs) or integrate crypto services into their offerings.

CEX Listings on TradFi Exchanges: Centralized exchanges might seek public listings and further develop decentralized exchange (DEX) platforms.

Tokenization of Real-World Assets (RWA): This emerging trend has the potential to significantly enhance valuations across the sector.

DeFi Expansion: Decentralized finance could witness exponential growth, with some protocols potentially outperforming major cryptocurrencies.

Despite regulatory hurdles, the crypto sector appears poised for substantial growth and reevaluation. Coutts suggested that if valued similarly to Coinbase, the CEX market could achieve a market capitalization of $749 billion, surpassing the $610 billion of the traditional finance sector. As adoption and innovation accelerate, the coming decade could bring transformative changes to both traditional and crypto markets, with Coinbase potentially emerging as a dominant force in global finance.