- During Coinbase’s Q4 2024 earnings call, Brian Armstrong predicted that by 2030, the crypto market could contribute up to 10% of global GDP.
- He further emphasized the U.S. as a key driver of crypto adoption, pointing to President Trump’s efforts to establish the country as the global crypto hub.
During Coinbase’s fourth-quarter 2024 earnings call on February 13, Coinbase CEO Brian Armstrong shared his belief that the United States is entering a new era of cryptocurrency. Armstrong emphasized that the U.S. currently represents 30% of the world’s GDP, positioning it as a key player in the growing crypto market.
If Armstrong’s forecast proves accurate, blockchain-based systems could represent up to 10% of global GDP by 2030, translating to more than $10 trillion worth of assets being tokenized or moved on-chain. With the global crypto market currently valued at $3.2 trillion, this potential growth highlights the immense opportunities for digital assets. Armstrong’s prediction further emphasizes the pivotal role the U.S. is set to play in this transformation.
He highlighted the U.S. Congress as the most pro-crypto the firm has ever seen, noting that lawmakers are actively pushing for laws concerning stablecoins and market structure. This is evident with the Securities and Exchange Commission (SEC) moving forward with a Crypto Task Force under the leadership of Commissioner Hester Peirce. In line with this, the SEC has withdrawn Staff Accounting Bulletin 121, a move that signals progress toward regulatory clarity.
Furthermore, a joint working group comprising representatives from the Treasury Department, the SEC, and the Commodity Futures Trading Commission (CFTC). is working on legislation to define the regulatory framework for stablecoins, which is expected to provide further clarity for the crypto industry.
Coinbase’s Strong Financial Performance
Coinbase reported a remarkable performance for the latest quarter, with a net income of $1.3 billion ($4.68 per share), a significant increase from $273 million ($1.04 per share) in the same period last year. Revenue also surged to $2.3 billion, up from $953.8 million a year ago. Notably, transaction revenue more than doubled, reaching $1.56 billion, surpassing analysts’ expectations of $1.29 billion.
Coinbase experienced explosive growth in trading volume, with total volume soaring to $439 billion, marking a 185% increase year-over-year. Consumer trading volume grew by 224%, while institutional trading volume rose by 176%. This surge was primarily attributed to increased volatility in crypto assets, particularly in the first and fourth quarters of 2024. The company cited two significant drivers for this growth: the election of a pro-crypto President and Congress in Q4 2024, which sparked greater expectations for regulatory clarity.
Coinbase is particularly bullish on the growth of USDC, the stablecoin issued by Circle. With stablecoin legislation expected to pass in the U.S. later this year, Coinbase anticipates that USDC will drive increased sales and marketing expenses in Q1 2025. Currently, USDC holds 26% of the stablecoin market share, trailing Tether (USDT), which holds 67%. However, with Coinbase’s ongoing efforts to expand USDC’s use cases, the company sees significant growth potential for the stablecoin.
Since the start of the year, Coinbase has achieved several significant milestones. These include securing VASP registration in Argentina, which allows the platform to offer local payment options to millions of crypto users. As we reported, Coinbase obtained FCA registration, enabling it to directly provide crypto services in the UK and strengthen its position in the European market. The company is also re-engaging with Indian regulators in an effort to restart operations after halting services in 2022 due to UPI payment issues.
