Coinbase's Multi-Dimensional Competitive Strategy and Challenges

As an important player in the U.S. cryptocurrency space, Coinbase has recently shown a proactive attitude in several areas. The company is working to enhance its influence on the mainstream social and political stage through policy advocacy and market expansion. At the same time, Coinbase is continuously optimizing its product experience and expanding its ecosystem to cope with the increasingly fierce market competition.

Stock Price Recovery and Increased User Activity

As we enter 2025, several key indicators for Coinbase are showing positive trends. As of June 16, the company's stock price rose to $242.71, an increase of over 60% from the low of $151.47 in April. This rebound is largely attributed to the company's inclusion in the S&P 500 index in mid-May, marking a higher recognition in mainstream financial markets. However, compared to the peak of $342.98 when it went public in April 2021, the current stock price is still down about 29%.

Data shows that 1,560 listed institutions have reported holding Coinbase shares, with a total holding of over 120 million shares, including several well-known investment institutions. In terms of user activity, the number of active users on Coinbase reached 34.7 million in May, ranking second in the industry.

Profit structure facing challenges

Despite the impressive performance of the market, Coinbase's profit structure still has concerns. The 2024 financial report shows that about 63% of the company's revenue comes from transaction fees, and this high dependence on trading fees makes its revenue extremely sensitive to market fluctuations. In the first quarter of 2025, the company's trading revenue declined by 19% quarter-on-quarter, falling to $1.3 billion, reflecting the pressure on market trading volume.

In addition, Coinbase recently encountered a serious trust crisis. In May, the company disclosed a data breach affecting 69,000 users, with potential losses reaching hundreds of millions of dollars. At the same time, the company is also facing a class action lawsuit regarding its stock performance and information disclosure, and the U.S. Securities and Exchange Commission is investigating whether the company exaggerated user data during the listing process.

Product Innovation and Global Strategic Layout

Facing multiple challenges, Coinbase is seeking diversified growth through product innovation and global strategic layout. The company announced the launch of compliant perpetual contract products in the U.S., filling a gap in the domestic derivatives market. More notably, Coinbase acquired Deribit, one of the world's largest crypto options and perpetual contract platforms, for $2.9 billion, significantly enhancing its position in the derivatives market.

In the payment sector, Coinbase has partnered with several e-commerce platforms to promote the use of USDC and has launched a new crypto credit card, the Coinbase One Card, in collaboration with American Express, offering up to 4% Bitcoin cashback on purchases. The company is also focusing on on-chain trading, announcing the integration of the Base network DEX into its main application and launching new tokens on Base to strengthen its position as an entry point for on-chain trading.

For developers, Coinbase has launched the CDP wallet, which is a new type of wallet infrastructure that combines account abstraction with a custodial entry. For institutional investors, the company has introduced the Coinbase Bitcoin Yield Fund, aimed at helping non-US institutional investors earn stable on-chain yields while holding Bitcoin.

Global Compliance Expansion and Political-Economic Resource Integration

Coinbase is actively seeking to become one of the first platforms to obtain a full EU crypto business license under the MiCA regulations and has already secured a virtual currency license in the state of New York, USA. In terms of political and economic resources, the company has brought in senior political strategists to join its global advisory board and has sponsored significant political events.

Overall, Coinbase has established a significant position in the mainstream financial system due to its compliance advantages, support from political and economic resources, and market recognition. However, in the face of a complex regulatory environment and intense market competition, whether the company can effectively address policy risks, optimize its profit structure, and continue to earn user trust will be key challenges for its future development.