Morning Minute: Coinbase Smashes Q3 Earnings Despite Sideways Crypto Market

Coinbase reported a remarkable Q3 performance, achieving $1.9 billion in revenue, surpassing expectations by approximately $200 million. Their net income surged to $433 million, reflecting a 477% year-over-year increase. Notably, transaction revenue exceeded $1 billion, driven by increased institutional trading and monthly transacting users reaching 12.6 million, exceeding previous projections. Coinbase's Layer-2 chain, Base, reported positive adjusted EBITDA for the first time. Looking forward, Coinbase anticipates Q4 revenue between $2.2 billion and $2.3 billion, supported by a projected average daily trading volume of $300 billion. The exchange is also focusing on the adoption of stablecoins as users shift towards cryptocurrency for payments and treasury uses. Factors contributing to Coinbase's recent success include heightened market volatility, stablecoin adoption, and favorable regulatory conditions. As the cryptocurrency landscape evolves, the strong performance of Coinbase indicates growing institutional interest, positioning the company favorably compared to major cryptocurrencies like Bitcoin.

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