Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Coinbase reported a turbulent first quarter, with revenue declines, a sharp drop in net income, and weakening retail trading activity—but XRP emerged as a major bright spot for the crypto exchange.
According to its Q1 2025 earnings report, Coinbase saw its retail crypto trading volume fall 17% to $78 billion, as Bitcoin dropped 11% over the same period.
Total revenue slipped 10% year-over-year to $2 billion, and net income plunged 94% to $66 million. Shares of Coinbase fell 6% following the results amid a broader downturn in tech stocks.
XRP Delivers Standout Performance
Despite the poor headline numbers, XRP delivered a standout performance.
Coinbase earned more transaction revenue from XRP than from Ethereum (ETH) or Solana (SOL), marking a notable shift in trading behavior.
XRP accounted for 18% of the company’s consumer trading revenue—surpassing both ETH and SOL combined and trailing only Bitcoin in revenue contribution.
Even more striking, Coinbase’s Securities and Exchange Commission (SEC) filing showed a 458% year-over-year surge in the value of XRP held on the platform.
This comes less than a year after the exchange resumed XRP trading following a court ruling in July 2023 that cleared Ripple of securities law violations for exchange-based sales.
XRP also led all cryptocurrencies in deposit growth on Coinbase in the last year, signaling renewed retail interest.
While Bitcoin and Ethereum remain core holdings, with Bitcoin rising 35% in Q1 and Ethereum totaling $250 million in value, XRP’s momentum stands out as a potential catalyst for future growth.
Still, Coinbase’s overall performance was hampered by nearly $600 million in unrealized losses on its crypto holdings.
The company’s net income decline reflects broader market pressures, especially following U.S. President Donald Trump’s aggressive tariff policies, which have contributed to global economic uncertainty.
In a strategic move, Coinbase recently agreed to acquire crypto options exchange Deribit for $2.9 billion, signaling a push into derivatives to diversify revenue streams and stabilize earnings in volatile markets.
Coinbase’s Q1 performance parallels rival Robinhood’s, which also reported a decline in crypto trading volume, from $71 billion at the end of 2024 to $46 billion last quarter.
XRP Attempts Recovery After Sharp Pullback, But Bullish Momentum Faces Resistance
XRP is currently trading at $2.36 following a recent bounce, but technical indicators show mixed signals across timeframes.
On the 1-minute chart, the RSI has climbed above 63, suggesting short-term bullish momentum. However, price action remains close to the upper Bollinger Band, often a signal for short-term exhaustion.
Meanwhile, the MACD is just beginning a modest bullish crossover, indicating that upward momentum is building, albeit cautiously.
On the 30-minute timeframe, XRP appears to be stabilizing after a strong rally earlier this week. The RSI is neutral around 52, signaling a potential consolidation phase rather than a strong directional move.
The Bollinger Bands are slightly widening, indicating rising volatility, while the price remains above the midline. However, MACD momentum is flattening, hinting that buyers may need more volume to push higher.
Overall, XRP’s price recovery shows signs of strength, but momentum remains fragile. If bulls can hold above the $2.35 support level and push through $2.38 resistance, further upside could materialize.
Otherwise, failure to sustain buying pressure may lead to another retest of the lower Bollinger Band near $2.33.
