Coinbase's income scrutiny reveals an unexpected contribution from XRP!
In a surprising turn of events, XRP has emerged as a significant player in Coinbase's transaction revenue landscape, outperforming Ethereum in Q2 2025. This shift, driven by a combination of factors, has redefined market dynamics and positioned XRP as a force to be reckoned with.
Coinbase's decision to reintroduce XRP in 2023, following favorable judicial decisions for Ripple, marked the beginning of this transformation. The relisting revitalized XRP trading on Coinbase, significantly increasing its revenue contribution compared to the previous year.
Despite Ethereum's price gains in Q2 2025, XRP's trading activity translated into more transaction revenue. This suggests that XRP trading perhaps involved higher fee-generating transactions or more favorable fee structures for Coinbase than Ethereum trades.
The broader market context also played a role. Overall trading volumes and revenues on Coinbase declined notably in Q2 2025 due to a slowdown in consumer and institutional trading and a strategic pricing adjustment for stablecoins by Coinbase in March 2025. In this environment, XRP's relative share of transaction revenue rose even as total transaction revenue dropped 39% quarter-over-quarter.
The decrease in trading volume and revenue across many segments may have disproportionately affected Ethereum’s market share compared to XRP, allowing XRP to outpace Ethereum in terms of relative revenue contributions within Coinbase’s transaction revenue pool.
As a result, XRP accounted for 13% of Coinbase's transaction revenues in Q2 2025, surpassing Ethereum's 12%. This made XRP the second-highest contributor after Bitcoin, which accounted for 34% of the transaction revenue.
The strong performance of XRP is attributed to successful relisting, a strategic shift in trading or fee dynamics favoring XRP transactions, and a market environment where XRP trading fees remained strong despite overall lower volumes and revenues across the exchange.
For French investors and those in other European regions, XRP is an asset to watch closely, given ongoing discussions on the regulation of payment tokens. Meanwhile, XRP has returned to the top 5 most traded tokens on Coinbase.
XRP is also gaining interest from fintechs in RippleNet and ODL solutions, positioning it as a fast cross-border payment solution. Bitcoin still leads in transaction revenues, but XRP's growing presence is noteworthy.
Coinbase's Q2 2025 transaction revenues were primarily driven by XRP, indicating an increasingly significant role for XRP within the platform. However, it's important to note that Coinbase holds significant assets, including 1.3 billion in BTC, 300 million in ETH, and 200 million in other assets, but XRP's revenue share suggests an increasingly significant place.
Moreover, Coinbase has seen a 44% increase in stablecoin revenues despite a decline in rates, indicating growing adoption of stablecoins like USDC as a payment tool and store of value.
Since its reintroduction, interest in XRP has grown, particularly among North American and Asian investors. The strong performance of XRP in 2025 is largely due to regulatory clarification in the US and increasing institutional adoption. This rise could be a strategic move by Coinbase and a strong signal for the global market.
[1] Coinbase Q2 2025 Earnings Report [2] Coinbase Q1 2023 Earnings Report [3] Coinbase Press Release: Coinbase Announces Stablecoin Pricing Adjustments [4] Ripple vs SEC Court Documents [5] Coinbase Blog Post: Coinbase Resumes XRP Trading
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- In the wake of Coinbase's decision to reintroduce XRP in 2023 following favorable judicial decisions for Ripple, there has been a significant shift in the platform's transaction revenue landscape, with XRP increasingly contributing more to its revenue pool compared to Ethereum, thanks to higher fee-generating transactions or more favorable fee structures for XRP trades.
- The growing interest in XRP, particularly among North American and Asian investors, coupled with the strategic shift in trading or fee dynamics favoring XRP transactions, has positioned XRP as a force to be reckoned with in the finance sector, making it a valuable asset for investing in technology-driven financial solutions.
