XRP generated more consumer transaction revenue than Ethereum on Coinbase in Q2 2025—marking the second consecutive quarter where the Ripple-affiliated token outperformed ETH in retail trading activity.
This trend highlights how regulatory clarity and price momentum continue to influence retail behavior, even as institutional demand drives Ethereum’s broader resurgence.
Overall, Coinbase transaction revenue fell 39% quarter-over-quarter to $764 million, with total net revenue missing analyst estimates at $1.5 billion. Yet beneath the slump, XRP’s consistent retail appeal reveals a nuanced battle for trader attention.
Regulatory wins propel XRP’s retail dominance
XRP’s rise in Coinbase transaction revenue began in Q1 2025, when the SEC dropped its appeal in the Ripple case, affirming that secondary-market sales of the token were not securities.
“That legal win sparked a rally in XRP’s price and retail interest,” said Juan Leon, research analyst at Bitwise Asset Management.
The token’s share of Coinbase consumer revenue surged to 18% in Q1 before settling at 13% in Q2, still ahead of Ethereum.
Retail traders flocked to XRP for its low-cost appeal and speculative potential, but the rally faded as Ethereum regained momentum. “Price momentum subsided in Q2,” Leon noted, attributing ETH’s rebound to institutional inflows and ecosystem growth.
Ethereum fights back with institutional demand
While XRP led in Coinbase transaction revenue, Ethereum’s Q2 resurgence was driven by factors beyond retail trading.
The passage of the GENIUS Act and anticipation around Ethereum ETFs revitalized institutional interest. “Demand for Ethereum is surging due to ETF inflows and purchases from treasury companies,” Leon explained.
ETH posted a 38% return in Q2 compared to XRP’s 11%, signaling a divergence between retail and institutional preferences.
Hank Huang, CEO of Kronos Research, noted that Ethereum’s lag in Q1 reversed sharply: “ETH’s underperformance flipped due to ecosystem developments and ETF hype, which restored confidence.”
Retail traders remain narrative-driven
Analysts emphasize that Coinbase transaction revenue reflects retail traders’ sensitivity to short-term narratives rather than long-term engagement.
“XRP’s Q1 rise was about legal clarity and value-seeking,” Huang said. “But Ethereum’s comeback shows how quickly retail sentiment shifts with market momentum.”
Min Jung, a senior analyst at Presto, added that Ethereum was “one of the most unloved assets in crypto” earlier this year, but it regained favor as tokenization trends gained traction.
The data suggests retail traders on Coinbase prioritize price action and headlines over fundamentals—a pattern likely to continue shaping transaction revenue trends.
Key takeaways
XRP outperformed Ethereum in Coinbase transaction revenue for Q2 (13% vs. 12%), extending a trend that began after Ripple’s legal victory.
Ethereum’s institutional revival, fueled by ETFs and the GENIUS Act, contrasted with its retail slowdown on Coinbase.
Retail traders remain fickle, with Coinbase transaction revenue heavily influenced by regulatory updates and price swings rather than ecosystem utility.
Olivia Jackson is a US-based cryptocurrency writer and market analyst with a passion for decoding the complexities of blockchain technology and digital assets. With over five years of experience covering the crypto space, she specializes in breaking down market trends, regulatory developments, and emerging Web3 innovations for both retail and institutional audiences.
Her work has appeared in leading finance and tech publications, including CoinDesk, Decrypt, and The Block, where she provides data-driven insights on Bitcoin, DeFi, and the evolving regulatory landscape. Olivia is particularly interested in the intersection of traditional finance and decentralized systems, often exploring how macroeconomic shifts impact crypto markets.
