Coinbase revenue soars by 72% to $1.6 billion, smashing analysts' predictions

Coinbase reported a significant increase in its first-quarter revenue, reaching $1.6 billion, up 72% from the previous quarter, surpassing analysts' expectations. The surge was driven by increased transaction volumes in both consumer and institutional trading sectors, and a favorable change in crypto accounting rules.

The company's net income soared to $1.18 billion, benefitting from a one-time $737 million gain due to new accounting rules. Despite the financial success, transaction expenses also rose by 73%. Looking ahead, Coinbase anticipates high expenses in Q2 due to increased trading volumes. Additionally, the launch of Base, an Ethereum layer-2 chain, contributed to diversifying revenue streams, with significant growth in transactions and developer activity.