Coinbase transaction revenues reveal a shift as XRP overtakes Ethereum
In the dynamic world of cryptocurrency, the landscape is constantly shifting, and recent developments on major exchanges like Coinbase are no exception. A significant trend has emerged in the relationship between Ethereum and XRP, as XRP has surpassed Ethereum in consumer transaction revenue on Coinbase.
The shift became apparent from Q1 to Q2 2025, with XRP accounting for 13% of the platform’s total trading revenue in Q2, compared to Ethereum’s 12%. Over the same period, XRP’s share increased from 11% to as high as 16%, while Ethereum’s share declined.
Several factors contributed to this trend. Ripple’s 2023 legal win against the SEC and subsequent appeal withdrawal boosted confidence in XRP’s long-term prospects, encouraging trading activity. The resurgence of XRP after its reintroduction to Coinbase in 2024, following a multi-year suspension, also played a role in reigniting retail interest and trading volume.
XRP experienced a strong price rally of over 60% in July 2025, reaching $2.92, driving increased retail trading on Coinbase. On-chain data shows significant whale buying and growing institutional interest in XRP’s OTC market, supporting higher trading volumes. Buzz around a possible XRP spot ETF by the end of 2025 fueled market optimism and speculative trading.
XRP’s efficiency in cross-border payments and faster settlement times compared to Ethereum enhanced its appeal to traders. Despite a 39% drop in retail trading volumes on Coinbase generally, XRP’s share rose, suggesting a shift in investor preference toward XRP and regulated, legally clearer tokens.
Bitcoin remained the dominant source of trading revenue with a 34% share, but Ethereum’s drop underscores the competitive and evolving nature of the crypto market on Coinbase. This transition highlights how regulatory developments, market sentiment, and competitive attributes like speed and liquidity can significantly influence trading revenue distribution between major cryptocurrencies on major exchanges such as Coinbase.
Meanwhile, Ethereum is not without its own catalysts. The SEC's withdrawal of its appeal in the Ripple case in Q1, affirming that XRP’s secondary-market sales weren’t securities, gave Ethereum a fresh narrative, helping it recover from lagging price and retail interest. The passage of the GENIUS Act into law may also provide Ethereum with further opportunities for growth.
Institutional demand for Ethereum is expected to continue into the second half of the year, and flows from Ethereum ETFs are fueling broader ecosystem vitality. The retail boost from Coinbase is price-driven and shows how retail sentiment can shift based on narratives, market momentum, and macro cues.
The pattern of Coinbase volumes reflects how they often react to these same factors. Total net revenue on Coinbase fell short of analyst expectations at $1.5 billion in Q2, but the shifting dynamics between Ethereum and XRP are a testament to the ongoing evolution of the cryptocurrency market.
- The cryptocurrency landscape on Coinbase is marked by a shift in consumer transaction revenue, with XRP surpassing Ethereum since Q1 2025, accounted for 13% of the platform’s total trading revenue in Q2, compared to Ethereum’s 12%.
- XRP's increased share from 11% to as high as 16%, while Ethereum’s share declined, is attributed to factors such as Ripple’s legal win against the SEC and increased retail trading activity.
- XRP's price rally, driving increased retail trading on Coinbase, and its efficiency in cross-border payments enhanced its appeal to traders, leading to a rise in its share despite a decline in overall retail trading volumes on the platform.
- Bitcoin remains the dominant source of trading revenue with a 34% share, but Ethereum's drop underscores the competitive nature of the crypto market, highlighting how regulatory developments, market sentiment, and competitive attributes like speed and liquidity can influence trading revenue distribution.
- Ethereum's recovery from lagging price and retail interest is due to the SEC's withdrawal of its appeal in the Ripple case, providing Ethereum with a fresh narrative, and the passage of the GENIUS Act may offer further opportunities for growth.
- Institutional demand for Ethereum is expected to continue, and flows from Ethereum ETFs are fueling broader ecosystem vitality, indicating the ongoing evolution of the cryptocurrency market on Coinbase.
