Coinbase reported a 28% year-over-year decline in spot trading volume during the fourth quarter, driven by Bitcoin’s recent downturn that saw the flagship cryptocurrency fall more than 15% from its mid-December high. The volume slump translated into a 12% drop in transaction fee revenue sequentially, putting pressure on the exchange’s core earnings stream. Investors will be watching whether a potential market rebound in the coming weeks can restore average daily trading values to the $20 billion-plus levels seen earlier in 2023.

Revenue from Coinbase’s stablecoin operations rose 65% year-over-year to $215 million in Q4, accounting for roughly 14% of total platform revenue. The company highlighted that growing demand for USDC yield products and transaction services helped stabilize overall top-line growth, even as spot trading fees waned. Management noted that stablecoin spreads and network fees continue to be a reliable cushion, and they expect stablecoin income to contribute at least 10% of total revenue for the full year 2024.

Coinbase’s DeFi wallet and institutional prime services saw combined assets under management increase by 40% sequentially, reaching $5.8 billion at year-end. The exchange said it added 12 new institutional clients to its custody and prime brokerage business in Q4, bringing the total to over 450 worldwide. These channels produced $150 million in revenue last quarter, up 30% from Q3, as institutional demand for staking, lending and off-exchange settlement products continues to grow.