"This Exchange Sells More Than Just Coins... Performance Improvement Expected"[Click eStock]

An analysis has suggested that Coinbase’s performance in the second half of this year could improve due to cost-saving measures.

On May 12, Yumin Kim, Senior Researcher at Shinhan Investment Corp., stated, "Although trading revenue was pressured by the weak crypto market, Coinbase’s fundamentals remain solid, as evidenced by its record-high market share and new USDC balance record. Workforce reductions have served as a signal for margin improvement," adding, "With the continued trend of revenue expansion driven by the transition to the ‘Everything exchange’, I recommend maintaining a strategy of buying on dips during share price corrections."

In the first quarter of this year, Coinbase recorded revenue of $1.41 billion and a net loss of $390 million. Both figures fell short of expectations by 5.8% and 69.6%, respectively. Commenting on this, Kim explained, "Most of the net loss was due to crypto valuation losses," but also noted, "Subscription and service income reached $580 million, accounting for 44% of total revenue and helping to mitigate volatility." She added, "Stablecoin-related revenue was $310 million, which was largely attributable to the new record average USDC balance of $19 billion within Coinbase."

The performance of the Everything exchange is becoming visible. Kim noted, "Annualized derivatives volume has grown by more than $200 million, and the prediction market launched in February surpassed an annualized $100 million in just two months." She continued, "In agent commerce, the x402 protocol has exceeded 100 million payment transactions." She further explained, "99% of on-chain agent transactions are in USDC, and over 90% occur on the Base chain, establishing Coinbase as the core infrastructure for the AI agent economy. Workforce reductions are part of a cost-saving and AI-native organizational transition strategy."

There are clear drivers for value growth in the mid- to long-term. Kim highlighted, "Key events include the expansion of the Everything exchange, expectations for the Clarity Act to be passed this summer, and broader USDC adoption." She projected, "Following the completion of restructuring, the full effect of cost reductions will be realized, and based on this momentum, Coinbase can grow in the second half of this year." However, she cautioned, "Coinbase remains sensitive to crypto prices, and the burden of high valuations persists."

This content was produced with the assistance of AI translation services.