Coinbase’s second-quarter financial report for 2025 highlights an unexpected shift in cryptocurrency dynamics. Ripple‘s XRP has overtaken Ethereum in transaction revenue on the platform, generating 13% of the total $764 million transaction revenue. Bitcoin remains at the forefront with a 34% share, while Ethereum secured the third spot with 12%. This trend marks a consistent rise for XRP, which has grown its share to 16% over the last six months, eclipsing Ethereum’s 11% share.
What Drives XRP’s Revenue Growth?
The resurgence of XRP can be attributed to increased investor confidence following a legal win against the SEC in July 2023. This legal victory eliminated prior uncertainties, boosting XRP’s attractiveness in the market. Investors responded to this clarity, driving up XRP’s transaction numbers and reinforcing its position in Coinbase’s revenue lineup.
How Does Bitcoin Retain Its Dominance?
Bitcoin continues to cement its status as the dominant cryptocurrency within Coinbase’s holdings and revenue, making up $1.3 billion of the company’s cryptocurrency assets. Bitcoin’s stature is further solidified by its alignment with major institutional holders like Metaplanet and Riot Platforms, showcasing its entrenched market leadership.
Stablecoins have also seen a notable surge, with a 44% increase in revenue compared to the previous year. Despite U.S. Federal Reserve’s interest rate reductions totalling 100 basis points, assets including USD Coin (USDC) maintained their popularity. This stability contributes to the recognition of interest-bearing products, sustaining investor interest and providing a buffer against fluctuating market conditions.
Key insights from the report are as follows:
- XRP’s transaction revenue climbed to 13% of Coinbase’s total, surpassing Ethereum.
- Bitcoin holds a significant portion of the exchange’s cryptocurrency, amounting to $1.3 billion.
- There was a 44% increase in revenue from stablecoins, despite interest rate cuts.
- The total transaction revenue of $764 million didn’t meet expert estimates.
The shifts delineated in Coinbase’s report suggest strategic pivots among crypto assets and highlight the repercussions of external legal and economic factors on market dynamics. Bitcoin’s dominance is unyielded, yet the performance of XRP signals evolving investor priorities. Ethereum’s fall behind illustrates the volatile nature of cryptocurrency rankings and market preferences. Such developments pose intriguing pathways for future revenue projections and market strategies in the cryptocurrency industry.
