Why Coinbase and Robinhood Could be Set for a Strong 2025?
As 2024 comes to an end, Bitcoin appears to be one of the best-performing asset classes so far. This was driven by the launch of new exchange-traded funds, which spurred wider adoption and optimism.
The question now is whether this momentum will extend to cryptocurrency trading platforms like Coinbase and Robinhood.
Coinbase and Robinhood ride the Bitcoin wave
Bitcoin has more than doubled in value since the start of 2024, when it was trading around $40,000 and currently trades near $94,000.
Clearly, cryptocurrencies have remained as volatile and volatile as ever throughout the year. For those who care high volatility In this area, investing in traditional stocks may be your best bet. That is, according to Fortune magazine Reporttwo cryptocurrency-related companies——Coin library and RobIEnhud——Fully prepared for strong development in 2025.
The two companies went public in early 2021 and have been following similar paths ever since. After initially strong performance, their shares plummeted as macroeconomic changes and the cryptocurrency market collapsed in late 2022. But things change in 2024.
Coinbase’s stock price started 2024 at $156, but ended the year near $250, a 50% increase. Robinhood shares are also up nearly 200% on the yearly chart.
Will retail interest drive Coinbase and Robinhood higher?
With broader market trends pointing bullishly into 2025, more people are likely to use trading apps like Robinhood and Coinbase to enter the market. Analysts believe Bitcoin may Breaking $120,000 Soon, those eager to join the rally will have to rely on these companies.
When Bitcoin and other cryptocurrencies soar, retail investors flock to trading platforms, driving an increase in app downloads.
Recently, Coinbase ranked ninth Global application rankingfollowed by Robinhood, ranked 13th. The simultaneous growth of Coinbase and Robinhood illustrates the new demand for easy-to-use cryptocurrency trading platforms.
From a technical point of view, Robinhood Q3 2024 The earnings report showed a significant increase in cryptocurrency trading volume, reaching $14.4 billion. This is a 114% year-over-year increase from the third quarter of 2023.
Founder and CEO Vlad Tenev also commented on the financial report.
“I’m extremely proud of our third quarter results and how smoothly our product engine is running. Over the past month, we launched Robinhood Legend, a new desktop product, and announced indexing options, futuresand a realized profit and loss tool will be launched soon. We have tremendous momentum and we’re just getting started,” Tenev said.
Additionally, Coinbase’s Total transaction volume in the third quarter That more than doubled year-on-year to $185 billion.
Robinhood and Coinbase won’t report fourth-quarter earnings until February. Still, strong results are expected as a sharp rise in Bitcoin in November sent the market surging, especially after Donald Trump won the election.
Additionally, Coinbase’s Basic blockchain It added 13.7 million users in October 2024, surpassing giants such as Ethereum and becoming the fastest-growing blockchain.
Overall, these two companies appear poised to have a major impact on the stock and cryptocurrency markets in 2025. However, there are challenges that need to be overcome.
For example, Coinbase was sued for $1 billion after the company was sued Decided to suspend trading Wrapped Bitcoin in December.
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