Coinbase Q2 Results: Trading Revenue Declines Sharply Amid Industry-Wide Contraction
Coinbase's second-quarter results showed a continued decline in trading revenue and subscription growth.
The company reported a 19% year-over-year drop in trading revenue, with spot volumes declining sharply both year-over-year and quarter-over-quarter. Industry-wide, crypto market cap contracted by 11% in the second quarter, while centralized spot ADTV fell nearly 20% year-over-year per Coingecko.
Coinbase's stablecoin holdings continued to grow, with average platform-held and custodied USDC reaching $20 billion in Q2, accounting for 26% of circulation. However, this growth was partly offset by the contraction of the stablecoin market, which fell 5% quarter-over-quarter.
Coinbase's core profit turned negative due to revenue pressure and relatively sticky costs. The company trimmed operating expenses through layoffs but invested in new product development, pushing R&D up 22%. Buybacks slowed significantly, totaling $120 million in Q2 compared to $1.1 billion in the previous quarter.