Following the latest reports on Coinbase’s Q2 results, $XRP took 13% of consumer transaction revenue, beating out $ETH at 12% as retail traders reportedly flocked to XRP after legal clarity around Ripple. This is the first quarter XRP has taken more consumer revenue share than ETH.
Coinbase’s total transaction revenue fell 39% quarter-over-quarter to $764 million and net revenue dropped to $1.5 billion, both below estimates of $1.59 billion.
Retail Volume Collapse Doesn’t Stop XRP’s Retail Strength
Retail volume collapsed in Q2 with consumer transactions down 34% and institutional activity down 26%. But XRP’s share rose from about 10% in Q1, where it briefly hit 18% as a result of retail interest after the SEC dropped its appeal in Ripple’s case.
Bitwise research analyst Juan Leon said XRP’s rise was due to legal clarity, calling it “a rally in XRP’s price and retail interest in trading the token.”
Ethereum Bounces Back With Institutional Flows and DeFi
After losing ground in early 2025, Ethereum recovered in Q2. Much of ETH’s recovery was due to institutional flows, including ETF activity, growing DeFi usage, and renewed ecosystem activity.
Leon said while Ethereum lagged at the start of the year, by mid-Q2, demand from corporate crypto treasuries and sustained ETF interest helped it regain ground. Ethereum ended Q2 with about 38% price gain, outpacing XRP.
Kronos Research CEO Hank Huang agreed, saying ETH’s recovery was due to stronger DeFi usage and institutional confidence, while blockchain utility narratives also supported price momentum.
Institutional Gravity Pulls Toward Ethereum
While retail traders briefly put XRP in the spotlight, Ethereum took back the narrative through institutional discipline. Analysts point out that Ethereum’s growing use cases, DeFi, staking and treasury holdings, are backed by regulation such as the GENIUS Act and tokenization frameworks. These have made ETH a deeper structural investment.
Revenue Trends and Market Context
Coinbase’s Q2 revenue picture was mixed: transaction revenue fell to $764M from $1.07B in Q1; subscription and services revenue dropped to $656M, missed estimates. Stablecoin revenue rose to $332M but missed projections. On the plus side, Coinbase delivered GAAP earnings per share of $5.14, beating expectations.
Total trading volume declined 28% QoQ to $237 billion, with retail volume hit hardest. Bitcoin was 35% of transaction volume and 31% of retail revenue, Solana was 10%.
What It All Means: XRP and Ethereum’s Diverging Paths
Coinbase’s Q2 earnings show two separate stories: XRP’s legal-driven retail pop and Ethereum’s recovery through structural adoption. Their revenue trajectories diverged sharply; XRP grabbed retail attention quickly, but ETH’s institutional anchor delivered the sustained rebound.
In effect, consumer transaction revenue became a proxy for retail sentiment, while Ethereum’s bounce meant deeper market maturity and use case adoption.
Conclusion
Based on the latest research, Coinbase’s consumer transaction revenue plummeted in Q2 but XRP’s retail appeal briefly overtook Ethereum. This was retail traders capitalizing on legal clarity as ETH lagged in Q1. However, Ethereum’s institutional flows, ETF momentum and DeFi traction allowed it to regain dominance.
If current trends continue, XRP may continue to get periodical retail surges while Ethereum’s growing ecosystem and enterprise adoption is stronger long term.
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Summary
In Q2, Coinbase saw $764M in consumer transaction revenue, down 39% from Q1. XRP narrowly beat ETH with a 13% revenue share vs ETH’s 12%. XRP’s retail surge was after the Ripple case win while ETH underperformed in Q1 but rebounded with institutional inflows, ETF demand and growing DeFi usage; ending the quarter up 38%. Despite volume decline ETH regained retail dominance through ecosystem resilience.
FAQs
What is consumer transaction revenue?
Trading fees earned by Coinbase from retail users.
Why did XRP briefly surpass Ethereum in Q2?
Retail trading surged on XRP after the Ripple case.
What helped Ethereum rebound in Q2?
Institutional ETF inflows, DeFi usage and ecosystem momentum.
Did Coinbase hit its revenue targets?
Q2 revenue was $1.5B, below estimates ($1.59B) and transaction revenue was $764M.
Glossary
Consumer transaction revenue – Fee income from retail trading (not institutional fees).
Retail trading volume – Total value of crypto traded by individual investors.
DeFi (Decentralized Finance) – Blockchain-based financial services including loans, staking, and yield products.
ETF inflows – Capital flowing into crypto-backed ETFs.
GENIUS Act – U.S. legislation clarifying stablecoin and token frameworks, boosting institutional confidence in crypto adoption.
Sources
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