Analysts have differing views on Coinbase's revenue pressure and derivatives expansion

【Analysts have differing views on Coinbase's revenue pressure and derivatives expansion】According to Jinse Finance, Coinbase's revenue in the first quarter fell 12% quarter-over-quarter to $2.03 billion, with trading revenue declining nearly 19%. Several analysts have lowered their revenue expectations for the second quarter and the entire year. JPMorgan noted that "institutional trading volume declined by 30% quarter-over-quarter," and the institutional fee rate dropped from 4.1 basis points to 3.1 basis points. However, Coinbase's acquisition of the world's leading crypto derivatives exchange, Deribit, for $2.9 billion is seen as a "bold bet in the derivatives space." Bernstein characterized the valuation as "reasonable," while Canaccord believes this deal will "prepare for cryptocurrency options approved by U.S. regulators." Additionally, subscription and service revenue grew 9% to $698 million, driven by the adoption of USDC, with Coinbase's USDC balance rising nearly 50% to $12.3 billion. Canaccord stated that its "Coinbase as a Service" strategy could "hedge trading cycle fluctuations," and Coinbase is still regarded as the "gold standard" in the digital asset space.