Coinbase Retail Volumes Decline as XRP Maintains Transaction Lead
Despite a sharp decline in Q2 retail trading volumes overall at Coinbase—dropping 39% quarter-over-quarter to $764 million—crypto assets continued to drive significant consumer transaction revenue. A key finding was XRP surpassing Ethereum for the first time since 2021 to become the top asset by this metric.
Coinbase’s Q2 shareholder letter detailed that XRP captured 13% of consumer transaction revenue, narrowly edging out Ethereum at 12%. While this represented an increase from Q1’s 10%, XRP’s share briefly hit 18% earlier in the quarter following a landmark legal ruling.
The shift was partly attributed to clearer regulatory waters. “In Q1, the SEC withdrew its appeal in the Ripple case,” explained Juan Leon, Research Analyst at Bitwise Asset Management. “That legal win sparked a rally in XRP’s price and retail interest in trading the token.” Coinbase reported that XRP’s trading share climbed steadily throughout 2024, capitalizing on this value-seeking interest.
However, this momentum proved short-lived. Leon noted, “Price momentum subsided in Q2.” Ethereum subsequently regained ground, citing institutional flows and ecosystem activity as drivers. Leon observed a clear shift in attractiveness, with Ethereum achieving a 38% return compared to XRP’s 11% during the quarter.
Ethereum’s resurgence was amplified by factors including the newly passed GENIUS Act and growing tokenization narratives. Furthermore, demand was fueled by inflows facilitated by Ethereum ETF applications and treasury purchases, according to Leon.
Market observers agree that external factors dictate the relationship. Hank Huang, CEO of Kronos Research, attributed both XRP’s earlier bounce and Ethereum’s Q2 strength to catalysts: “XRP’s Q1 boost followed legal clarity,” while in Q2, “ecosystem developments and ETF anticipation restored investor confidence.” Min Jung of Presto added that “the retail-heavy nature” of Coinbase volumes means sentiment is heavily swayed by narratives, momentum, and broader macro cues. Ethereum was notably described as “one of the most unloved assets” before gaining traction from institutional treasury activity.
