Coinbase Shifts Revenue Focus as Prediction Markets Lag

Coinbase's Q2 report highlighted a significant shift in its revenue streams. The company now earns almost 88% of its net revenue from sources other than Bitcoin spot trading, with subscription and services accounting for nearly half of this.

The report also revealed that Coinbase cut costs during the quarter, reducing headcount by approximately 14% and adjusting expenses by 9%. This led to a 14th consecutive quarter of positive adjusted EBITDA at $208M in a market experiencing a downturn.

Coinbase owns AI agent payment rails, which accounted for nearly all on-chain agentic commerce last quarter. However, this segment is not yet driving meaningful revenue. Additionally, the company's prediction markets grew 106% quarter over quarter but still trail behind Robinhood's event contracts in terms of revenue.

The report highlighted a notable trend: USDC's revenue slipped to $292M from $305M, while average market cap remained flat at $77B. This drop was attributed to a decline in off-platform USDC usage, with revenue on USDC held within Coinbase products increasing instead.