Coinbase’s first-quarter earnings report revealed a 10% decrease in total revenue to $2 billion, failing to meet industry expectations despite the recent acquisition of Deribit. This slowdown is attributed to sluggish trading activity and a broader market cooldown. The company experienced a significant drop in net income, plummeting to $66 million from $1.29 billion in Q4 due primarily to an unrealized loss on its crypto holdings of $596 million. 2023 also saw the company record a notable decline in transaction revenue and trading volumes (down 19% and 10.5% respectively). These figures point to a slowdown, but Coinbase also witnessed growth in subscription and services revenue, rising 8.9% to $698.1 million, fueled by strong stablecoin-related income. Despite the overall decline, Coinbase gained ground in key areas like market share capture. Their expansion into emerging markets such as Argentina and India was supported by regulatory approvals, leading to increased market share in spot and derivatives trading globally. A landmark legal victory against the U.S. Securities and Exchange Commission also marked a significant step towards clarity in cryptocurrency regulation. Coinbase’s acquisition of Deribit, one of the largest crypto derivatives platforms for $2.9 billion, significantly enhanced their reach in this crucial market. The company further announced its ambitious new payments protocol x402, designed to facilitate instant stablecoin transactions directly over the internet via HTTP, paving the way for an autonomous and AI-driven digital economy.