Coinbase experienced a challenging first quarter of 2025, facing revenue declines, a significant reduction in net income, and decreased retail trading activity. Despite these setbacks, XRP emerged as a noteworthy highlight for the cryptocurrency exchange.
The company’s Q1 earnings report revealed a 17% decrease in retail crypto trading volume, which dropped to $78 billion, coinciding with an 11% decline in Bitcoin’s value during the same period.
Total revenue decreased 10% year-over-year, totaling $2 billion, while net income saw a dramatic plunge of 94%, falling to $66 million. Following the release of these results, Coinbase shares dipped 6%, reflecting a broader downturn affecting technology stocks.
XRP Shines Amidst Challenges
In spite of the overall dismal financial figures, XRP demonstrated exceptional performance during the quarter.
Coinbase generated more transaction revenue from XRP than from both Ethereum (ETH) and Solana (SOL), indicating a significant shift in trading patterns among users.
Importantly, XRP represented 18% of the company’s consumer trading revenue, outpacing the combined contributions from Ethereum and Solana, and positioning itself just behind Bitcoin in terms of revenue generation.
Notably, Coinbase’s filing with the Securities and Exchange Commission (SEC) indicated a remarkable 458% year-over-year increase in the value of XRP held on the platform.
This development follows the exchange’s reinstatement of XRP trading in July 2023, after a court ruling cleared Ripple of any securities law violations regarding exchange sales.
XRP also led all cryptocurrencies in deposit growth on Coinbase over the past year, highlighting a resurgence of retail interest in the asset.
While Bitcoin and Ethereum continue to be vital holdings—Bitcoin increasing by 35% in Q1 and Ethereum valued at $250 million—XRP’s upward momentum may serve as a potential catalyst for future growth.
XRP trading volume on Coinbase last quarter was higher than pretty much every asset besides BTC and USDT
Lesson in there pic.twitter.com/PU5mrWqcMq
— Alana Levin (@AlanaDLevin) May 8, 2025
However, Coinbase’s overall performance was dampened by nearly $600 million in unrealized losses across its crypto holdings.
The decline in net income reflects ongoing market pressures, particularly following U.S. President Donald Trump’s stringent tariff policies, which have contributed to instability in the global economy.
In a bid to diversify revenue streams and enhance earnings stability amidst volatility, Coinbase has recently agreed to acquire crypto options exchange Deribit for $2.9 billion.
Coinbase’s Q1 results mirror those of competitor Robinhood, which also reported a decline in crypto trading volume—from $71 billion at the end of 2024 to $46 billion last quarter.
XRP Seeks Recovery Amid Technical Nuances
XRP is currently trading at $2.36 after a recent rebound, but various technical indicators provide mixed signals across different timeframes.
On the 1-minute chart, the RSI has risen above 63, suggesting a short-term bullish trend. Nevertheless, price action is nearing the upper Bollinger Band, a common precursor to possible exhaustion.
Simultaneously, the MACD has begun to show a modest bullish crossover, indicating the potential for building upward momentum, albeit cautiously.
In the 30-minute timeframe, XRP appears to be stabilizing after a significant rally earlier in the week. The RSI remains neutral at around 52, hinting at a possible consolidation phase rather than a pronounced directional movement.
While Bollinger Bands are slightly widening, suggesting increased volatility, the price remains above the midline. However, MACD momentum is flattening, which suggests that buyers may require more volume to drive prices higher.
Overall, XRP’s price recovery indicates underlying strength, but the current momentum appears fragile. Should the bulls manage to hold above the $2.35 support level and break through the $2.38 resistance, there could be room for further gains.
Conversely, if buying pressure dissipates, another test of the lower Bollinger Band near $2.33 may ensue.
The post Coinbase Revenue from XRP Tops ETH, SOL as Holdings Soar 458% – Is XRP Price Ready for Breakout? appeared first on Finance Newso.
