Coinbase Global, Inc. (NASDAQ:COIN), a prominent player in the cryptocurrency exchange market, isn’t simply maintaining its position; it’s actively reclaiming market share that it had previously ceded to competitors, most notably Robinhood Markets, Inc. (NASDAQ:HOOD), according to insights shared by Oppenheimer. This resurgence is noteworthy, especially considering that Robinhood demonstrated significant growth in transaction-based cryptocurrency revenue during the fourth quarter of 2024. This revenue surge for Robinhood coincided with a substantial increase in the value of Bitcoin (BTC-USD) and other major cryptocurrencies, fueled by speculation surrounding a potentially more favorable regulatory landscape for digital assets under the newly elected Trump administration.
Delving deeper into the market share dynamics, Coinbase’s dominance in the realm of cryptocurrency spot trading is evident. As of last month, Coinbase held a 67% share, a figure that remained consistent with the previous month (December) and represented an increase from 64% in November. Conversely, Robinhood’s share experienced a decline, falling to 9% last month from 11% in the preceding month and 13% in November, as highlighted by analyst Owen Lau in a note, citing data from CoinGecko.
This trend of Coinbase gaining ground at the expense of Robinhood becomes even more pronounced when examining the period from April 2024 to June 2024. During this timeframe, Coinbase’s market share expanded significantly, rising to 71% from 66%, while Robinhood’s share contracted, decreasing to 5% from 8% over the same period.
The stability observed in Coinbase’s market share, according to the analyst, suggests a robust and relatively stable client base. The analyst further cautioned against overinterpreting month-over-month fluctuations, particularly those observed in November 2024, emphasizing the “noise” introduced by the election results, which were perceived as highly favorable to the digital asset sector.
One of Coinbase’s key advantages lies in the sheer breadth of its offerings. The platform boasts a listing of over 200 different tokens, significantly surpassing the approximately two dozen coins available on Robinhood. However, Robinhood is actively working to expand its cryptocurrency offerings, accelerating the rollout of new tokens. In addition to expanding its token listings, Robinhood is also pursuing other initiatives aimed at bolstering its crypto business, including investments in its non-custodial cryptocurrency wallet.
During the company’s fourth-quarter earnings conference call, Robinhood CEO Vlad Tenev expressed optimism about these crypto initiatives, stating, “We’ve seen a lot of good signs, increased engagement, increased usage, and we’re going to keep making it better and better.”
Robinhood’s fourth-quarter crypto notional volumes reached an impressive $71 billion, a substantial increase from $14.4 billion in the third quarter and a more than 400% jump compared to the same period in the previous year.
Coinbase also reported exceptional fourth-quarter 2024 results and provided strong guidance for the first quarter of 2025, benefiting from the overall rally in the cryptocurrency market. Trading volume on the Coinbase platform surged to $439 million in the fourth quarter, compared to $185 million in the previous quarter and $154 million a year ago.