Coinbase It has now surpassed two of the world's largest stock exchanges in terms of transaction revenue, according to Cryptographic analyzer From Coutts Private Bank.

The cryptocurrency exchange generated $5.75 billion in transaction revenue over the past 12 months, compared to just $4.54 billion for the Nasdaq, where many of the world's most valuable companies, including Apple, Google and Microsoft, are traded.

Coinbase It also outperformed the Hong Kong Stock Exchange, HKEX, which achieved $2.67 billion over the past year, as well as the Brazilian Bolsa Balcao Stock Exchange, which achieved $1.81 billion.

Keep in mind that these numbers are not directly comparable and depend on the exchange fees charged by each transaction – for example, when buying or selling stocks or Bitcoin- And not just the huge number of transactions or the popularity of the platform.

To put these numbers into context, all major cryptocurrency, stock and commodity exchanges around the world generated about $51.27 billion in transaction revenue, according to Coutts data.

Putting Coinbase's revenue into context

Although Coinbase's transaction revenue growth is very high, it is still far lower than the largest exchanges in the world.

The London Stock Exchange (LSE) generated transaction revenues of $10.82 billion over the past 12 months. The Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE) as well as several futures, debt and commodities exchanges, remains far ahead with transaction revenue of $9.16 billion.

Moloko Sannoh, CEO of the liquidity provider Mansa FinanceCoinbase, which is based on Coinbase's BASE blockchain, noted that although Coinbase's transaction revenue exceeds many of the world's largest exchanges, its transaction volume lags behind the NASDAQ.

“Coinbase is still significantly lower in volume than all the exchanges included in Coutts' data. But because they charge higher fees, they receive higher transaction revenue.

“I think there is still a very long way to go,” Sannoh added.

However, he expects Coinbase will likely continue to surpass traditional exchanges in revenue, potentially reaching third place in total transaction revenue in 2025.

However, he believes it could take 10 to 20 years before Coinbase surpasses the Nasdaq in total trading volume.

“I feel like over the next 10 to 20 years is when we will see cryptocurrency exchanges completely upend traditional markets, but it will still take a long time,” he said. “But I wouldn’t be surprised if, at some point after the end of the decade, Coinbase becomes the largest global exchange, both in terms of volume and in terms of trading revenue.”

Coinbase still has a long way to go if it wants to surpass the NASDAQ in terms of transaction volume; Trading volume reached nearly $8 billion over the past 24 hours According to Koenjikucomparison To approximately $445 billion for Nasdaq.

Sannoh believes this is likely due to Coinbase's potential for growth in Latin America, Africa, Europe and other regions outside of its traditional core market of the US.

“I think its distribution in the United States is very strong, but it has been very weak internationally and reluctant to expand,” he said. But now with the new management, they will be more optimistic about expanding abroad. I believe this is where the next billions of dollars in revenue and volume will come from.

Coinbase sales fall to $1.2 billion in Q3 2024 from $1.45 billion In the previous quarterIt came below analysts' expectations. It generated profits of $75 million compared to $2 million the previous year.

Coinbase did not immediately respond to a request for comment Decryption.

Modified by Stacey Elliott.