Coinbase earnings show a bullish start to the year

Coinbase’s earnings seem to show that crypto is ready for a bull market, if it’s not in one currently. 

The company impressed Wall Street with its earnings on Thursday, posting beats across the board.

Coinbase also reported that Base was continuing to see adoption. 

“We are seeing early product market fit with Base, our layer-2 solution, where developer activity has surged and Base has processed over 2x more transactions than Ethereum in the last 30 days,” Coinbase said in its earnings letter. 

Stablecoin revenue also jumped 15% quarter over quarter to $197 million. 

“The primary driver was higher USDC market capitalization, which is the total amount of USDC in circulation. The USDC market capitalization growth rate was the highest among all USD stablecoins in Q1,” the company added. 

Read more about the company’s earnings results in the article below:

Analysts were expecting the crypto exchange to come in on top, but the stock slipped in after-hours trading after notching gains throughout the day Thursday.

The stock hit a low of roughly $200 earlier this week, nearly $30 off of its current price. Bitcoin also notched a weekly low on Wednesday — falling to $56,000 before rebounding to $59,000. It’s down 8.5% in the past seven days.

Read more: Analysts expect strong Q1 report for Coinbase, but are watching for this 

While it’s important not to downplay Coinbase’s quarter, it is a snippet of time in the past. The weakness seen in the crypto market just this week won’t be reflected in the company’s earnings until next quarter. 

Over the past month, COIN is in the red — down roughly 8% — though it’s still posted impressive gains over the last year, up over 360%. 

Coinbase isn’t the only company showing off its strength as we enter the next phase of the crypto cycle. 

Earlier this week, Tether released its attestation. The stablecoin issuer announced that it smashed previous records, tallying a net profit of $4.5 billion in the first quarter. It previously notched an all-time high of $.28 billion in net profit.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: Unpacking crypto and the markets.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.