The first quarter of 2025 was a turbulent period for the cryptocurrency market, and Coinbase — the leading U.S.-based digital asset exchange — was no exception. Despite a significant downturn in revenue and net income, one standout performer offered a silver lining: XRP. The Ripple-associated token surged an astonishing 458% in value on Coinbase, outpacing even Ethereum and Solana in transaction revenue generation.
While macroeconomic pressures and declining trading volumes weighed heavily on Coinbase’s financials, XRP’s resurgence has sparked renewed interest in its role within the broader crypto ecosystem.
Coinbase’s Challenging First Quarter
Coinbase reported a 10% year-over-year decline in revenue, bringing its top line down to $2 billion. Net income plummeted by 94%, landing at just $66 million. This sharp drop was largely attributed to unrealized losses — nearly $600 million — on its cryptocurrency holdings.
Retail crypto trading volume also took a hit, falling 17% to $78 billion during the first three months of the year. This decline mirrored a broader market correction, with Bitcoin dropping 11% over the same period. Tech stocks broadly declined as well, contributing to a 6% dip in Coinbase’s share price on Friday.
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These numbers reflect not just internal performance but also external economic forces. A global financial slump, intensified by aggressive trade policies linked to former U.S. President Donald Trump’s tariff measures, dampened investor sentiment across asset classes — including digital assets.
XRP Shines Amid Market Downturn
Despite the bleak landscape, one bright spot emerged: XRP’s remarkable performance on Coinbase.
According to filings with the Securities and Exchange Commission (SEC), the value of XRP held on Coinbase surged 458% over the past year. More notably, XRP generated more transaction revenue for the exchange than either Ethereum or Solana during Q1 2025.
- XRP contributed 18% of Coinbase’s consumer trading revenue
- Its earnings were nearly equal to the combined totals of Ethereum and Solana
- Only Bitcoin surpassed XRP in revenue contribution
This resurgence is especially significant given XRP’s history with U.S. exchanges. For nearly two years — from 2021 to July 2023 — Coinbase suspended trading of XRP due to regulatory uncertainty surrounding Ripple Labs’ alleged securities violations.
However, a pivotal summary ruling clarified that Ripple’s sale of XRP through public exchanges did not constitute an unregistered securities offering. This decision paved the way for major platforms like Coinbase to relist the asset.
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Since relisting, XRP has steadily regained momentum. It recorded the largest increase in crypto deposits on Coinbase over the past 12 months, signaling strong user demand and confidence in its long-term utility.
Why XRP’s Comeback Matters
XRP’s resurgence isn’t just a short-term price spike — it reflects deeper trends in market dynamics and institutional acceptance.
Regulatory Clarity Fuels Adoption
The SEC’s partial win — and subsequent legal clarification — removed a major overhang that had discouraged U.S. exchanges from listing XRP. With clearer guidelines, platforms can now engage with the asset without fear of immediate enforcement action.
This precedent may influence how other tokens are treated under U.S. securities law, potentially opening doors for more digital assets to gain compliant listings.
Real-World Utility Drives Demand
Unlike many speculative altcoins, XRP is designed for real-world applications, particularly in cross-border payments. RippleNet, Ripple’s global payments network, uses XRP as a bridge currency to enable fast, low-cost international transfers.
Financial institutions and payment providers continue to explore or adopt Ripple’s solutions, reinforcing demand for the underlying token.
Strong Community and Ecosystem Support
XRP maintains one of the most active and loyal communities in crypto. Known colloquially as the “XRP Army,” this group has consistently advocated for fair treatment and wider adoption, contributing to sustained interest even during bear markets.
Broader Industry Trends
Coinbase isn’t alone in facing headwinds. Robinhood, another key player in retail crypto trading, also reported declining revenues as trading volume dropped from $71 billion at year-end 2024 to $46 billion in Q1 2025.
Even Robinhood’s CEO, Vlad Tenev, acknowledged crypto’s extreme volatility and announced plans to diversify the company’s business beyond digital assets.
Yet, both firms benefited from a surge in late 2024 following Donald Trump’s election victory — a moment that reignited retail investor enthusiasm for cryptocurrencies.
What Lies Ahead for XRP and Coinbase?
While Q1 was financially challenging for Coinbase, XRP’s strong showing suggests shifting dynamics within the exchange’s asset mix. As regulatory clarity improves and use-case-driven tokens gain traction, assets like XRP could play an increasingly important role in exchange revenue models.
Moreover, increased deposits and transaction activity around XRP indicate growing trust in its compliance status and long-term viability.
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FAQ: Understanding XRP’s Surge on Coinbase
Q: Why did XRP surge 458% on Coinbase?
A: The surge reflects increased deposits, trading volume, and transaction revenue following regulatory clarity from the SEC ruling that Ripple’s exchange sales of XRP were not securities violations.
Q: Did Coinbase profit more from XRP than Ethereum?
A: Yes — in Q1 2025, XRP generated more consumer trading revenue than either Ethereum or Solana individually, accounting for 18% of total consumer revenue.
Q: Was XRP ever delisted from Coinbase?
A: Yes — trading was suspended from late 2021 until July 2023 due to ongoing litigation between Ripple and the SEC. It was relisted after favorable court rulings.
Q: Is XRP considered a security in the U.S.?
A: The SEC ruled that certain institutional sales of XRP were unregistered securities offerings, but public exchange sales were not. This distinction allowed major exchanges to relist it.
Q: What role does XRP play in cross-border payments?
A: XRP serves as a liquidity tool in RippleNet, enabling near-instant settlement of international transactions with minimal fees compared to traditional banking systems.
Q: Could other altcoins follow XRP’s path to compliance?
A: Potentially — the Ripple case sets a precedent that not all token distributions are securities. This could influence future regulatory decisions for other blockchain projects.
Final Thoughts
Amid a rough start to 2025, Coinbase found unexpected strength in an often-overlooked asset: XRP. Its dramatic 458% value increase and outsized revenue contribution highlight how regulatory clarity, real-world utility, and community support can drive resilience even in bear markets.
As the crypto industry evolves, assets backed by clear use cases and legal frameworks may increasingly outperform purely speculative ones. For investors and exchanges alike, XRP’s comeback story offers valuable lessons — and perhaps a glimpse into the future of compliant digital finance.
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