Coinbase reported a 39% quarter-over-quarter decline in Q2 transaction revenue, dropping to $764 million amid shrinking retail trading volumes. Despite this downturn, XRP emerged as a standout performer by generating 13% of Coinbase's consumer transaction revenue, edging out Ethereum at 12% for the second consecutive quarter.
This trend builds on Q1 momentum when XRP's share temporarily peaked at 18% following regulatory clarity after the SEC withdrew its appeal in the Ripple case. Analysts attribute XRP's sustained retail appeal to this legal resolution, noting its trading share climbed steadily from below 10% in early 2024 despite posting only an 11% Q2 price return versus Ethereum's 38% gain.
The divergence highlights a growing disconnect between retail and institutional activity. Ethereum's stronger price performance was fueled by institutional flows, ETF anticipation, and ecosystem developments, while XRP's revenue leadership reflects persistent retail interest. Supporting this bullish sentiment, XRP's notional open interest hit a record $8.8 billion in July, with positive funding rates indicating traders are paying premiums to maintain long positions.
Concurrently, Coinbase secured recognition in TIME's 100 Most Influential Companies list for shaping US crypto policy. The exchange expanded its European presence through MiCA licensing in Luxembourg and seeks SEC approval to offer tokenized equities, positioning itself against platforms like Robinhood.