Coinbase Stock Soars – How the COIN Is Outperforming Wall Street Favorites

COIN’s rally in 2025 has outpaced Tesla, JPMorgan, and even PayPal. Here’s what’s fueling the surge.

As of June 10, 2025, Coinbase Global (COIN) is trading at approximately $254 per share, reflecting a remarkable year-to-date monthly gain of over 29%. This performance has outshined traditional Wall Street heavyweights like Tesla, JPMorgan, Goldman Sachs, and PayPal, positioning Coinbase as a standout in a volatile market. Surprisingly, a crypto exchange is leading the charge against established financial and tech giants, signaling a seismic shift in investor priorities. Why does this matter? Coinbase’s surge isn’t just about stock prices but it’s a barometer for crypto adoption and growing investor confidence in digital assets.

Coinbase vs Wall Street

To understand Coinbase’s dominance, let’s compare its monthly performance (9th May to 9th June 2025) with other major players as of June 10, 2025 –

Source: Nasdaq accessed June 10, 2025

This chart highlights Coinbase’s edge, with its monthly returns nearly doubling Tesla’s and significantly outpacing financial giants like JPMorgan and Goldman Sachs. While PayPal and Block, both fintech innovators, have posted modest gains, they trail far behind COIN’s explosive growth.

What’s Driving Coinbase’s Rise?

Institutional Interest in Crypto

Major institutions like BlackRock and Goldman Sachs are diving deeper into crypto, with spot Bitcoin and Ethereum ETFs approved in 2024 driving billions in institutional capital. Coinbase’s role as a trusted custodian and trading platform, particularly through Coinbase Prime, has fueled a 140% year-over-year increase in institutional trading volume, reaching $941 billion in 2024. This institutional embrace signals mainstream acceptance, boosting COIN’s appeal.

Regulatory Clarity Post-SEC Lawsuits

The resolution of legal battles with the SEC, including the dismissal of a key case in early 2025, has alleviated some regulatory overhang. President Trump’s crypto-friendly executive order and the nomination of Paul Atkins as SEC chair further enhance optimism for a lighter regulatory touch, fostering a more predictable environment for Coinbase’s operations.

Increase in Trading Volume and Global Expansion

Coinbase reported $393 billion in trading volume in Q1 2025, a 26% year-over-year increase, driven by heightened retail and institutional activity. Its “Go Broad, Go Deep” global expansion strategy has strengthened its presence in markets like India, where it relaunched in 2025 after regulatory approval. The $2.9 billion acquisition of Deribit, a leading crypto derivatives exchange, further bolsters Coinbase’s global footprint and derivatives offerings.

Read More: Top Cryptos to Buy on Coinbase

New Revenue Sources

Coinbase is diversifying beyond transaction fees, which historically accounted for the bulk of its earnings. In Q1 2025, subscription and services revenue hit a record $698 million, up 9% from the prior quarter, driven by stablecoin income (e.g., USDC) and staking services. The launch of Base, Coinbase’s Layer-2 blockchain, has also gained traction, with a 16% increase in transactions, reducing reliance on volatile trading fees.

What It Signals for the Crypto Market

Coinbase’s rally reflects a maturing crypto ecosystem, with growing investor confidence driven by milestones like Bitcoin surpassing $100,000 and Ethereum reaching $4,000 in late 2024, alongside increased adoption of stablecoins and tokenized assets. As a “gateway” stock, COIN serves as a bridge for investors hesitant to directly hold crypto, with its inclusion in the S&P 500 in 2025, replacing Discover, expected to attract $15 billion in passive fund inflows, validating crypto’s place in traditional portfolios. This momentum is amplified by Coinbase’s ability to synergize retail and institutional interest, with its user-friendly platform drawing 9.7 million monthly transacting users and its Coinbase Prime services catering to hedge funds and pension funds, creating a virtuous cycle that boosts trading volumes and platform growth.

Key Risks Ahead

• Volatility of Crypto Markets – Coinbase’s fortunes are tied to crypto prices, which remain volatile. A 27% Bitcoin drop in early 2025 dragged COIN shares down 4%, illustrating this sensitivity. A prolonged bear market could reduce trading volumes and revenue.
• Regulatory Uncertainty in the U.S.– While recent developments are promising, regulatory risks persist. The SEC’s ongoing scrutiny of crypto assets as securities and potential new regulations could raise compliance costs or limit Coinbase’s offerings.
• Earnings Dependency on Transaction Fees – Despite diversification, transaction fees still dominate Coinbase’s revenue. In Q1 2025, consumer transaction revenue doubled, but fee compression from competitors like Binance, with lower fees, remains a threat. Coinbase One’s zero-fee subscription model aims to counter this but needs broader adoption.
• Competition from Decentralized Exchanges – Decentralized exchanges (DEXs) are gaining traction, with rising total value locked (TVL) in DeFi protocols. These platforms offer lower fees and greater autonomy, potentially eroding Coinbase’s market share among retail traders.

Coinbase isn’t just riding the crypto wave but it’s helping define it. Its 2025 performance, outpacing Wall Street stalwarts like Tesla, JPMorgan, and PayPal, underscores its pivotal role in the crypto economy. Fueled by institutional interest, regulatory progress, global expansion, and diversified revenue streams, COIN is reshaping how investors view digital assets. Whether you’re bullish on crypto’s future or cautious about its volatility, Coinbase’s ascent signals a new era for Wall Street’s embrace of blockchain technology. Investors should weigh its high-reward potential against inherent risks, but one thing is clear – Coinbase is no longer a niche player, it’s a market leader.