The active users of Coinbase, the major cryptocurrency exchange, have increased by 120%, while trade volumes tripled.
It has been reported according to documents filed with the US Securities and Exchange Commission that Coinbase generated earnings of $3.05 per share and total revenues of $1.8 billion. However, the firm fell slightly short of its expected $3.07 per share.
The company generated $585 million in revenue amid Bitcoin’s (BTC) rally into new all-time highs (ATH) during the fourth quarter of 2020 and just $191 million in Q1 a year ago. Approximately, 94% of the firm’s quarterly net revenue came from crypto-asset trading fees.
The report said that Coinbase’s net profits also surged, with the firm reporting profits of $771 million, more than quadruple its profits from the previous quarter and an increase of 24 times year-on-year. Trading volume on the exchange tripled compared to the previous quarter, with Coinbase’s active users more than doubling, from 2.8 million to 6.1 million.
The company stated:
“It is important for investors to remember that our business is inherently unpredictable.”
Likewise, the company was willing to predict it will host between 5.5 million and 9 million monthly users over the entirety of 2021.
Coinbase also revealed that it plans to list the popular meme coin Dogecoin (DOGE) within the next eight weeks or so and to increase the speed the platform is able to launch new listings.
Coinbase has seen immense growth in Q1, where it recorded 3x its total revenue from Q4 last year. The exchange has also announced that it will list Dogecoin soon. https://t.co/X0JEXyHtWN — Cointelegraph (@Cointelegraph) May 14, 2021
Alesia Haas, the Chief Financial Officer of Coinbase, said:
“We are slow. We need to add more assets. We’re making big investments to improve the speed of our asset addition.”
“We hope to be the primary financial account in the crypto economy and engage our users with all the transaction types.”
In addition to services, most people “are very familiar with in a typical fiat system,” such as “credit cards, loans, deposit accounts,” Haas emphasized the unique services enabled by crypto assets, such as staking and governance.
Thus, she concluded:
“I think that crypto will enable new transactions that we can’t even envision today.”