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XRP Surpasses Ethereum in Transaction Revenue on Coinbase
Retail trading volumes on Coinbase dropped sharply in Q2, but XRP continued to generate more transaction revenue than Ethereum, extending a trend that began in Q1.
According to Coinbase’s Q2 shareholder letter, XRP accounted for 13% of retail transaction revenue, slightly more than Ethereum’s 12%. This contrasts with Q1, when XRP spiked to 18% before falling back to 10%.
Total transaction revenue declined 39% quarter-over-quarter to $764 million, and total net revenue came in below analyst expectations at $1.5 billion, compared to a consensus estimate of $1.59 billion.
“In Q1, the SEC withdrew its appeal in the Ripple case, affirming that **secondary market XRP sales are not securities,” said Juan Leon, an analyst at Bitwise Asset Management. “That court victory triggered a surge in XRP’s price and renewed interest from retail traders.”
XRP’s share of trading on Coinbase steadily increased from below 10% throughout 2024. The token’s Q1 price jump coincided with a wave of value-seeking traders reacting to regulatory clarity.
However, the rally didn’t last.
“The price momentum slowed in Q2,” Leon noted, as Ethereum regained ground thanks to institutional inflows and renewed interest in its ecosystem.
“With fewer new regulatory or product catalysts, retail traders shifted back to Ethereum, where stablecoin and DeFi activity accelerated,” Leon added.
Leon pointed to the GENIUS Act and narratives around tokenization as key factors behind Ethereum’s rally, which yielded 38% returns in Q2 compared to XRP’s 11%.
Still, Ethereum’s Q2 comeback wasn’t driven by retail traders alone.
“Demand for Ethereum surged due to ETF inflows and purchases by companies holding Ethereum-backed treasury bonds,” Leon explained. “We expect strong institutional demand for ETH to persist through the second half of the year.”
Other observers cited price trends and changing sentiment as key drivers of the shift.
“XRP’s retail rally in Q1 was fueled by regulatory clarity and low-cost appeal, attracting value-focused traders,” said Hank Huang, CEO of Kronos Research.
Ethereum’s slump worsened early in the year, but by Q2, it rebounded as ecosystem development and ETF anticipation “restored investor confidence and liquidity,” Huang noted.
He added that Ethereum ETF flows are fueling the vitality of the broader ecosystem.
Still, Coinbase’s retail performance remains price-driven, highlighting how sentiment can swing based on media coverage, market conditions, and macro signals rather than sustained platform engagement, Huang said.
Min Jung, senior analyst at Presto, echoed that sentiment, noting Ethereum underperformed in Q1 as ETH/BTC ratios fell to multi-year lows and retail interest faded.
According to Jung, this reflects how Coinbase’s trading volumes are largely retail-driven, and thus highly reactive.
He added that Ethereum has begun to gain momentum, aided by the rising popularity of digital treasury bonds, which gave Ethereum “fresh energy” to recover from earlier price and retail demand slumps.
See also: "Binance Launches Unusual Discount Crypto Purchase Service"
