Coinbase's Advance: A Diverse Layout and Coexisting Challenges

In the process of advancing compliance in the U.S. cryptocurrency industry, Coinbase undoubtedly plays an important role. Recently, the company has attempted to expand its influence in mainstream society and the political arena by sponsoring events such as the 250th anniversary parade of the founding of the United States. Meanwhile, Coinbase has been accelerating product innovation and ecosystem expansion over the past few months, striving to optimize the user experience and enhance market confidence, while working to create a more diversified growth engine.

Stock Price Recovery and Concerns over Profit Models

Since 2025, Coinbase has shown positive signals in several key metrics, with both stock prices and user activity rebounding.

As of June 16, 2025, the stock price of Coinbase (COIN) has rebounded to $242.71, an increase of over 60% from the low of $151.47 in April 2025. This rebound is partly attributed to the positive impact of COIN's formal inclusion in the S&P 500 index in mid-May 2025. As the first cryptocurrency company to join this index, it marks an increase in its recognition in mainstream financial markets, providing strong support for its stock price. However, compared to the listing high of $342.98 in April 2021, the current stock price is still down about 29%.

![The Attack of Coinbase: A Big Money Sponsorship and Acquisition Paves the Way to Enter the Mainstream Circle via the S&P 500](https://img-cdn.gateio.im/webp-social/moments-6095d790b4c3cc9a4951399fe0317516.webp01

Data shows that 1,560 listed institutions have reported holding Coinbase stock, with a total of over 120 million shares, including several well-known investment institutions.

In terms of user activity, website traffic monitoring data shows that Coinbase had 34.7 million active users in May, ranking second in the industry.

![The Attack of Coinbase: Big Currency Sponsorship and Acquisitions Pave the Way, Leveraging the S&P 500 to Enter Mainstream Circles])https://img-cdn.gateio.im/webp-social/moments-2057157ef9c429d7861e769c03faac6d.webp(

However, behind the impressive market performance, there are significant concerns regarding Coinbase's profit structure. The 2024 financial report shows that approximately 63% of the company's revenue comes from transaction fees. This high dependence on trading fees makes its revenue extremely sensitive to fluctuations and activity levels in the cryptocurrency market. In the first quarter of 2025, Coinbase's trading revenue fell by 19% quarter-on-quarter, dropping to $1.3 billion, reflecting obvious pressure on market transaction volumes. Moreover, the rapid development of the on-chain ecosystem is gradually diverting trading volumes and user attention, intensifying competitive pressure on centralized exchanges.

Coinbase is currently facing serious trust challenges. In May of this year, the company disclosed a data breach affecting over 69,000 users, with potential losses reaching hundreds of millions of dollars, severely impacting user trust and brand image. Additionally, due to poor stock performance and information disclosure issues, Coinbase is facing a class-action lawsuit. Regulators are investigating whether Coinbase exaggerated user data during its direct listing process in 2021, focusing on the authenticity of its "100 million verified users" metric. These incidents have also triggered market panic at times, becoming negative factors that suppress stock prices.

Multidimensional Competition: Product Innovation and Global Strategic Layout

In the face of multiple challenges in the market environment, Coinbase is actively seeking diversified growth paths through product innovation and global strategic layout, striving to reshape its competitive advantage in the market.

In terms of perpetual contracts, Coinbase has announced that it will launch a compliant perpetual contract product in the U.S., officially entering the U.S. crypto derivatives market. Additionally, Coinbase has announced the acquisition of Deribit, one of the largest global crypto options and perpetual contract platforms, for $2.9 billion, significantly enhancing its position in the crypto derivatives market.

In the payment sector, Coinbase has partnered with multiple e-commerce platforms to promote the use of USDC in e-commerce payments. The company has also collaborated with a well-known credit card company to launch a new crypto credit card, which is planned to be issued in the U.S. market in the fall of 2025, offering up to 4% cashback in Bitcoin.

In response to the growing trend of integration between CEX and DEX, Coinbase has announced that it will integrate the Base network DEX into its main application, allowing access to millions of on-chain assets. The company has also launched a new token on Base to enhance the chain's competitiveness and liquidity in the Layer 2 network.

Coinbase has launched a CDP wallet aimed at developers, which is a new type of wallet infrastructure that combines account abstraction with a custodial entry. Users can fully control their on-chain assets without having to manage private keys or relying on a centralized custodian.

![The Rise of Coinbase: Sponsorship and Acquisition Pave the Way, Using S&P 500 to Enter Mainstream Circles])https://img-cdn.gateio.im/webp-social/moments-ea1cb57deab32b90d353913f697df5aa.webp(

On the institutional investor side, Coinbase's asset management company has launched a new fund specifically designed for non-U.S. institutional investors, aimed at helping institutional clients earn stable on-chain yields while holding Bitcoin.

In terms of global compliance expansion, Coinbase is actively striving to become one of the first platforms to obtain a European cryptocurrency business license. The company has also secured significant virtual currency licenses in the United States. Meanwhile, Coinbase is strengthening its integration of political and economic resources, such as inviting senior political strategists to join its advisory board.

![The Attack of Coinbase: Large-scale Sponsorship and Acquisitions Pave the Way, Entering the Mainstream Circle with S&P 500])https://img-cdn.gateio.im/webp-social/moments-b7d10f924a50381b1da6dd2b1f16a2ff.webp(

Overall, Coinbase has established a foothold in the mainstream financial system thanks to its first-mover advantage in compliance, support from political and economic resources, and market recognition from being included in the S&P 500. However, in the face of an increasingly complex and changing regulatory environment and intensified market competition, whether Coinbase can effectively respond to policy risks, enhance the diversity of its profit structure, and continue to win user trust will remain key challenges for its future development.

![The Attack of Coinbase: Broad Token Sponsorship and Acquisitions Pave the Way, Leveraging the S&P 500 to Enter the Mainstream Circle])https://img-cdn.gateio.im/webp-social/moments-e18c6aee0f1aae240c9021061ad34d87.webp(