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Coinbase Q4 Earnings Expected to Show Best Volume Since 2021

The fourth quarter was a good one for crypto and Wall Street analysts expect leading U.S. exchange Coinbase (COIN) to have posted a big jump in earnings from the prior three months. Revenue for the fourth quarter is expected to have been $1.8 billion, according to FactSet, up from $1.26 billion in the third quarter. Earnings-per-share are estimated to have risen to $1.99 from $0.41. Maybe more importantly, thanks to the major rally across crypto following Donald Trump`s presidential election victory, analysts expect exchange volume to have risen to $195.9 billion in the year`s final three months from $185.3 billion in the third quarter. That $195.9 billion figure would be the strongest quarterly result since the fourth quarter of 2021. “We maintain our bullish thesis on COIN, seeing the company well positioned to benefit as crypto begins a potential transition into a new era,” analysts at Citi bank wrote in a note. The bank has a buy rating on the stock and this week increased its price target to $350 from $275. Shares on Tuesday are trading at $270, ahead nearly 90% from the year-ago level. The Citi team, however, does expect Coinbase to report fourth quarter revenue of $1.7 billion, missing the $1.8 billion consensus estimate. The November election was a “monumental catalyst for the crypto ecosystem," wrote JPMorgan’s Ken Worthington, who nevertheless remains neutral on the shares. He sees fourth quarter revenue at $1.77 billion, also a miss from the $1.8 billion estimate. Outlook on 2025 While the final months of 2024 had many catalysts for crypto and thus Coinbase, 2025 is hard to predict as policy changes typically take some time to go into effect, say some Wall Street analysts. “For [2025], we assume static crypto prices and factor more normalized volumes resulting in 6% YoY transaction revenue growth vs. consensus of 3% growth,” Citi said. “Not unlike in the past, we expect the stock to remain as a `risk-on` play throughout 2025 and will likely remain volatile around macro developments and swings in market sentiment," Citi continued. "That being said, we expect the next 1-2 years to be highly formative for Coinbase’s business model/competitive strategy, as well as for the greater digital asset space.” One of Coinbase’s main priorities over the past year has been to diversify its revenue stream, 50% of which still comes from trading fees. Retail traders, which pay the highest trading fee, still have not returned to the same levels seen in 2021, according to research firm Kaiko. The share of volume coming from that clientele shrank to just 18%, down from 40% in 2021, which continues to weigh on transaction revenue, Kaiko said. According to Citi, Coinbase could solve this issue in 2025 by leaning further into the tokenization of assets, embedded smart contract applications and Web3, the potential efficiencies in cross-border and remittance, as well as using the blockchain as an AI governance tool, among others. “In our view, the next evolution for Coinbase’s growth trajectory will rely on utility… an area with many proofs-of-concepts, but perhaps waiting to be unlocked with clearer rules,” the bank’s analysts wrote. CoinOtag

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DeepSeek AI predicts Solana (SOL) price for Q1 2025

Solana ( SOL ) is navigating significant volatility, mirroring broader corrections, currently trading at $191 at the press time. The latest downturn comes after Federal Reserve Chair Jerome Powell’s hawkish remarks, which have rattled market sentiment. The CME FedWatch tool now assigns a 95.5% probability that interest rates will remain unchanged at the March 19 meeting, which could weigh on assets like Solana. Solana one-day price chart. Source: Finbold While Solana faces near-term pressure, the broader market downturn raises concerns about the long-term trajectory of digital assets in 2025. To gauge what lies ahead, Finbold consulted DeepSeek to analyze where Solana might stand by the end of the first quarter of 2025. DeepSeek identifies key factors driving Solana’s price With both its online functionality and the DeepThink (R1) AI model enabled, DeepSeek AI has identified both bearish and bullish factors shaping Solana’s price trajectory. Bearish case Solana faces several headwinds that could drive its price lower in Q1, 2025. A key concern is declining on-chain activity , with daily transactions on the Solana network plummeting 66% to 23,935 from its peak on January 23. This drop in network engagement indicates weaker demand for SOL, especially as the memecoin frenzy that fueled its 2024 rally is fading. The Trump (TRUMP) memecoin, previously a major contributor to Solana’s surge, has crashed 80% from its peak, further dampening market enthusiasm. The biggest concern, however, is the looming token unlocks , set to inject 11.3 million SOL into the market over the next three months. If demand fails to absorb the increased supply, SOL could face further selling pressure in the months ahead. DeepSeek outlook on Solana. Source: DeepSeek /Finbold Bullish case Despite current headwinds, DeepSeek AI predicts that Solana could rally by the end of Q1 2025, driven by institutional interest and ecosystem expansion. The potential approval of a Solana exchange-traded fund ( ETF ) remains a major upside catalyst, with the SEC acknowledging multiple ETF filings from 21Shares, Bitwise, Grayscale, and VanEck. Bloomberg analysts Eric Balchunas and James Seyffart estimate a 70% probability of approval in 2025, which could unlock significant institutional capital and further legitimize Solana as an investment vehicle. Institutional players are also showing confidence, with Franklin Templeton recently filing for the Franklin Solana Trust in Delaware, a step that often precedes a formal ETF application. Beyond the ETF push, VanEck has projected that SOL could reach $520 by 2025, citing Solana’s rising dominance in the smart contract platform (SCP) sector. Analysts estimate that Solana’s market share in this space could expand from 15% to 22% by year-end, fueled by macroeconomic factors such as U.S. M2 money supply growth, which has historically correlated with crypto market growth. Solana’s Q1 2025 outlook Solana’s Q1 2025 outlook remains uncertain, with its price trajectory hinging on institutional adoption and macroeconomic forces. According to DeepSeek AI, SOL could surge to $250, a 27% gain from current levels, if ETF approvals unlock institutional inflows and drive renewed investor confidence. However, mounting market pressures, including weak demand, looming token unlocks, and persistent macroeconomic uncertainty, could send Solana plunging to $120, marking a 39% decline. With the March 19 Fed meeting, ETF approvals, and on-chain activity trends shaping sentiment, the coming months will be crucial in determining Solana’s next move. Featured image via Shutterstock The post DeepSeek AI predicts Solana (SOL) price for Q1 2025 appeared first on Finbold . CoinOtag