Crypto Exchanges Diversify Amid Slumping Volumes

Crypto exchanges are shifting their focus beyond trading as volumes remain under pressure. Coinbase, Gemini, and Bullish are expanding into non-trading revenue streams such as stablecoins, prediction markets, and loyalty programs.

At Coinbase, the gap between trading revenue and non-trading revenue narrowed to $44 million from $132 million a year earlier. The company has seen average USDC holdings rise 44% year over year to $20 billion.

Gemini has tripled its prediction-market maker metrics since early this year and introduced rebate and rewards programs, but second-quarter trading volume and trading revenue fell 66% and 38%, respectively, from a year earlier. Bullish is also running a rewards program aimed at driving trading activity.