As 2024 comes to a close, Bitcoin appears to have been by far one of the top-performing asset classes in the year. This was driven by the launch of new exchange-traded funds, which spurred broader adoption and optimism.
Now, the question is whether the momentum will extend to crypto trading platforms like Coinbase and Robinhood.
Coinbase and Robinhood Ride the Bitcoin Wave
Bitcoin has more than doubled in value since the beginning of 2024, when it traded at around $40,000, and is now trading close to $94,000.
Clearly, cryptocurrencies remained as volatile as ever throughout the year, with dramatic fluctuations. For those concerned about the high volatility in this space, investing in traditional stocks might be the best option. That said, according to a Fortune report, two crypto-related companies—Coinbase and Robinhood—are well-positioned for a strong 2025.
The two companies went public in early 2021 and have followed similar paths since. After a strong initial performance, their stock prices plummeted following the shifts in the macroeconomy and the collapse of the crypto markets in late 2022. But the story changed in 2024.
Coinbase began 2024 at a share price of $156 but ended the year near $250, up 50%. Robinhood shares rose by almost 200% on the yearly charts as well.
Coinbase and Robinhood Price Performance. Source: TradingView
Retail Interest to Push Coinbase and Robinhood Higher?
With the broader market trends pointing towards a bullish 2025, more people might enter the market using trading apps like Robinhood and Coinbase. Analysts believe that Bitcoin might shoot past $120,000 soon, and those eager to join the rally will have to rely on these companies.
When Bitcoin and other cryptocurrencies surge, retail investors flock to trading platforms, fueling increased app downloads.
Recently, Coinbase took the ninth spot in global app rankings, followed by Robinhood at 13. The simultaneous growth of Coinbase and Robinhood shows a renewed demand for easy-to-use crypto trading platforms.
Looking at the technicals, Robinhood’s Q3 2024 earnings report revealed a significant surge in crypto trading volume, reaching $14.4 billion. This marked a 114% year-over-year increase from Q3 2023.
Founder and CEO Vlad Tenev also commented on the earnings report.
“I’m really proud of our Q3 results and how smoothly our product engine is humming. In the past month, we introduced Robinhood Legend, our new desktop offering, and announced index options, futures, and a realized profit and loss tool are coming soon. We have a ton of momentum, and we’re just getting started,” Tenev stated.
Additionally, Coinbase’s Q3 total trading volume has more than doubled year over year to $185 billion.
Robinhood and Coinbase won’t report their Q4 earnings until February. Still, strong results can be expected due to the market surge fueled by Bitcoin’s significant rally in November, especially after Donald Trump’s election victory.
Separately, Coinbase’s Base blockchain added 13.7 million users in October 2024, outpacing giants like Ethereum and emerging as the fastest-growing blockchain.
Overall, the two companies seem poised to make a major impact on the stock and crypto markets in 2025. However, there are also challenges to overcome.
For instance, Coinbase was sued for $1 billion after the company decided to suspend trading of Wrapped Bitcoin in December.
