Coinbase Beats Q3 Forecasts as Transaction Revenue Jumps to $1 Billion

Coinbase reported $1.9 billion in revenue for Q3, a 26% increase from the previous quarter, surpassing analyst expectations of $1.8 billion. The company posted a profit of $433 million, down from $1.4 billion in Q2 but showing significant year-over-year growth from $75 million. Transaction revenue rose to $1 billion, a 37% increase from the prior quarter and up from $573 million a year ago. This performance followed a challenging Q2, where trading activity slowed due to macroeconomic factors. Furthermore, Coinbase has expressed interest in launching a token for its Ethereum layer-2 network, Base, potentially adding significant value. The company's diversification strategy continues with stablecoin revenues increasing to $355 million, highlighting its move beyond reliance solely on transaction fees. The overall stock performance has risen approximately 33% year-to-date despite market fluctuations, signaling a positive outlook amidst changing crypto market dynamics.

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