In a groundbreaking shift, XRP has outperformed Ethereum in Coinbase’s Q2 2025 transaction revenue, capturing 13% of the platform’s total revenue compared to Ethereum’s 12%. This marks the first time XRP has surpassed Ethereum in this metric, signaling a significant change in trading behavior and institutional adoption. What’s driving this shift, and what does it mean for the future of altcoins? Let’s dive in.
XRP vs Ethereum: A Historic Shift in Coinbase Revenue
The latest data from Coinbase reveals that XRP has edged out Ethereum in transaction revenue for Q2 2025. This milestone reflects growing investor confidence in XRP, fueled by regulatory clarity and its utility in cross-border payments. Here’s a quick comparison:
- XRP: 13% of Coinbase’s Q2 revenue
- Ethereum: 12% of Coinbase’s Q2 revenue
- Bitcoin: Dominates with 34% of revenue
Regulatory Clarity Boosts XRP Adoption
Ripple’s legal victory over the SEC in July 2023 removed a major hurdle for XRP, reducing uncertainty and attracting institutional investors. This clarity, combined with XRP’s fast transaction speeds, has made it a preferred choice for cross-border payments and fintech solutions.
Institutional Demand Drives XRP’s Growth
XRP’s over-the-counter (OTC) trading volume now accounts for 19% of its global trading volume, highlighting strong institutional interest. Ripple’s leadership has emphasized growing adoption in enterprise and cross-border settings, even as on-chain adoption lags.
Stablecoins and Bitcoin: The Bigger Picture
While XRP’s rise is notable, stablecoins like USDC contributed to a 44% revenue increase for Coinbase, cushioning the impact of declining retail trading volumes. Bitcoin remains the dominant force, holding $1.3 billion in Coinbase’s crypto assets.
What’s Next for XRP and Ethereum?
This shift underscores the evolving crypto landscape, where regulatory clarity and institutional adoption are key drivers. While Ethereum remains a powerhouse, XRP’s performance signals a growing demand for faster, more liquid assets in specific use cases.
Frequently Asked Questions (FAQs)
Q: Why did XRP surpass Ethereum in Coinbase revenue?
A: XRP’s regulatory clarity, fast transactions, and institutional adoption drove its outperformance.
Q: How does XRP’s OTC trading volume compare to Ethereum?
A: XRP’s OTC volume is 19% of its global trading, reflecting strong institutional interest.
Q: What role did Ripple’s legal victory play?
A: The SEC case win in 2023 reduced uncertainty, boosting investor confidence in XRP.
Q: Is Ethereum still a dominant player?
A: Yes, Ethereum remains a key player, but XRP’s rise highlights shifting market dynamics.
