Coinbase reports prediction markets exceed $200m in annualised revenue
Deals & M&A1 min read
In brief
- Coinbase said prediction markets surpassed $200m in annualised revenue in the September quarter.
- Daily traders in the segment grew more than 60% quarter over quarter, the company said.
- Coinbase reported 82% quarterly compound growth in prediction markets since launch.
Coinbase Global said its prediction-markets business surpassed $200m in annualised revenue in the September quarter, the company reported in its third-quarter earnings after US markets closed. The company said daily traders in the segment grew by more than 60% quarter over quarter.
Coinbase said prediction markets have seen 82% quarterly compound growth since launch and described the segment as one of the fastest-growing products by revenue in its history. The company offers event contracts through a partnership with a prediction market operator.
According to the company, users who trade predictions also generate additional spot volume. Coinbase is pursuing an Everything Exchange model intended to offer clients a range of financial services.
Coinbase chief financial officer Alesia Haas said prediction markets add a revenue stream that is less correlated to crypto volatility, according to the report. Dat Ngo, an accountant and financial expert at Vetted Prop firms, said using prediction markets to bring in traders and then move them into options, futures and retirement accounts is sensible from a business standpoint, the report said.
- Annualised prediction-markets revenue September quarter
- $200m
- Quarter-over-quarter growth in daily traders September quarter
- 60%
- Quarterly compound growth since launch
- 82%