In its first quarter report for 2024, Coinbase showed a significant 72% growth in total revenue from quarter to quarter, reaching $1.6 billion.

Accompanying this upsurge was a noteworthy net income of $1,176 billion, or 1,588% YoY growth. Compared to a net loss of $79 million over the same period previous year, this amount shows improvement. Coinbase had a 331% increase in net profits from the previous quarter.

In addition to setting new records for Coinbase Prime usage and USDC market capitalization, the cryptocurrency exchange saw an increase in its market share in US spot and futures trading. The corporation claims that noteworthy overseas activities played a major role in the rise overall.

The effect of exchange-traded funds for bitcoin

As stated by Coinbase: "Although we are unable to link the rise in market capitalization to a specific driver, we believe this increase was influenced by a variety of factors, such as the launch of the Bitcoin ETFs, which have experienced over $11 billion in net inflows so far in 2024."

Adjusted EBITDA increased from $324 million in the previous quarter to $1.014 billion, compared to $287 million reported in the first quarter of last year. Looking ahead, Coinbase anticipates continued momentum in Q2 2024, with robust projections in transactions, subscription, and service revenue.

Recently, the crypto exchange secured registration as a restricted dealer from the Canadian Securities Administrators.

This achievement marked an important moment in Coinbase's global expansion efforts, positioning it as the first international crypto exchange to attain registration in Canada.

The approval in Canada added to Coinbase's growing list of registrations in key countries worldwide, including France, Spain, Singapore, Italy, Ireland, and the Netherlands.

Meanwhile, in the United States, a federal judge in Manhattan recently permitted the US Securities and Exchange Commission to proceed with a lawsuit against Coinbase, albeit dismissing one claim.

Overcoming Regulatory Obstacles

Regarding these regulatory obstacles, Coinbase said:

"On the legislative front, we are seeing a step change among key leaders in Washington DC aligning on the need for stablecoin legislation, which we believe is a hopeful sign that broader crypto legislation will eventually materialise in the US."

In June of last year, Coinbase was sued by the SEC for allegedly breaking securities laws pertaining to the trading of specific cryptocurrency coins.

The SEC bases its argument on well-established legal precedents, and the interpretation of cryptocurrency assets as securities is at the heart of the legal battle.