Coinbase Sees Q2 Retail Trading Decline, But XRP Outperforms Ethereum in Consumer Revenue

Coinbase reported a sharp drop in retail trading volumes for Q2, with total transaction revenue falling 39% quarter-over-quarter to $764 million.

Key Takeaways:

• XRP outperformed Ethereum in Coinbase’s Q2 consumer revenue, holding a 13% share.
• Retail interest in XRP surged after legal clarity, with Q1 trading share peaking at 18%.
• XRP notional open interest hit a record $8.8B, signaling growing bullish sentiment.

However, XRP emerged as a standout, generating more consumer transaction revenue than Ethereum for the second consecutive quarter.

According to the company’s Q2 shareholder letter, XRP accounted for 13% of Coinbase’s consumer transaction revenue, edging out Ethereum at 12%.

This builds on Q1 figures, where XRP’s share jumped from 10% to a temporary peak of 18%, fueled by renewed retail interest following legal clarity around the asset.

Ethereum, despite delivering a stronger overall return in Q2 — 38% compared to XRP’s 11% — trailed in consumer revenue.

Analysts point to a growing disconnect between retail trading activity and broader institutional flows.

Ethereum’s momentum was largely attributed to developments around its ecosystem and growing anticipation for spot ETF approvals.

XRP’s steady rise in trading share from below 10% earlier in 2024 underscores the impact of regulatory clarity on retail behavior.

XRP holders are the most valuable in the whole of crypto.$XRP accounted for a higher percentage of Coinbase trading revenue than $ETH or $SOL.

(Source: Coinbase Q2 2025 earnings) pic.twitter.com/6VQc1FwWgi

XRP saw a spike in notional open interest for its perpetual futures contracts last month.

Notional open interest, the total value of leveraged positions held by traders, climbed to an all-time high of $8.8 billion, according to CoinGlass. The figure corresponds to nearly 2.9 billion XRP in open contracts.

The previous record for XRP notional open interest stood at $8.3 billion, which was hit in late January before the start of former U.S. President Donald Trump’s second term.

Across most venues, XRP’s funding rate was positive and climbing, signaling a market where longs are willing to pay shorts to maintain positions, a classic indicator of bullish sentiment.

As reported, the number of wallets holding at least 1 million XRP tokens has also surged to an all-time high.

As reported, TIME has recognized Coinbase as one of 2025’s 100 Most Influential Companies, labeling the crypto exchange a “disruptor” for its significant role in shaping US digital asset policies and markets.

The accolade highlights Coinbase’s aggressive advocacy in Washington and its expanding influence in the crypto sector.

Coinbase’s stock has surged 42% year-to-date, climbing from around $303 to a high near $382.

The rise comes amid the passage of the GENIUS stablecoin bill and Coinbase’s historic inclusion in the S&P 500 in May.

TIME noted the exchange as a key driver behind the industry’s policy efforts and predicted Coinbase could become the central hub for crypto trading in the US.

Beyond the US, Coinbase is broadening its reach in Europe, securing a license under the EU’s MiCA regulatory framework through Luxembourg’s financial regulator.

Additionally, Coinbase is seeking SEC approval to offer tokenized equities, which would position it as a competitor to popular retail trading platforms like Robinhood and WeBull.

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