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Coinbase revenue tripled in the 1st quarter of 2021

Coinbase has become the 1st crypto company to be traded publicly. And every quarter it has been improving its performance. Coinbase’s per-share earning was at $3.05 with the total revenue of $1.8 billion in Q1 2021. While the revenue of the last quarter of 2020 was $585 million. This means Coinbase tripled it’s revenue in just a few months amidst the crypto boom in 2021. The revenue jump has been colossal as compared to last quarter but comparing it to Q1 2020, its an even higher increase.

Coinbase tripled its revenue in Q1 2021
Coinbase revenue tripled in Q1 2021

After the company announced excellent results of Q1 2021, their shares were up by 3% in the latest trading session on Thursday. The increase in crypto prices means higher investments from people which means an even higher fees. All this combines to the fact that Coinbase’s profit has been increasing faster than ever. We can expect that the performance of the company’s share in the stock market also get’s better. I say this because at this point Coinbase’s share is trading at a much discounted price then what it opened at in its IPO.

Talking about the profits of the company the Q1 2021 numbers stand at $771 million which is an even 4 times greater increase as compared to Q4 2020.  We can expect these numbers continue to rise if the prices and popualarity of Bitcoin and other coins rise too. It is also important for Coinbase to add more coins to their platform so as to bring in even more users.

Coinbase’s future


Image Source: NPR

Coinbase and crytpo are directly tied. I say this because out of the entire profits of Q1 2021, 94% came from the trading fees. This means that Coinbase will go on a downward spiral if crypto market dips. So, the company actually relied on the fact that crypto is here to stay and people will keep trading them as the future gets even brighter. The company says that they are not trying to compete with other exchanegs in terms of fees. This is because their primary goal is to be trustworthy rather than cost effective.

Coinbase is one of the few exchnages that has managed to not break down due to high demand and traffic. The company has been doubling down on the number of verified users and transaction happening every month. And as the growth phase is on, it is trying its best to offer unprecendented service to its customers.

A good thing that I would like to see from Coinbase is to expand to more regions. A good place would be India where there is huge demand but the lack of any such quality apps. Yes, we have WarirX and Binance but the higher the competition the better.

Which exchange do you use to trade cryptocurrencies? And is it functioning properly in this growth phase of the market? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.

Also Read: Elon Musk tweets that he is planning to improve Dogecoin security



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