As 2024 comes to a close, Bitcoin seems to have been one of the best performing asset classes of the year. This was driven by the launch of exchange traded currencies, which encouraged wider adoption and optimism.
Now, the question is whether the trend will extend to crypto trading platforms like Coinbase and Robinhood.
Coinbase and Robinhood Ride the Bitcoin Wave
Bitcoin's value has more than doubled since the beginning of 2024, when it was trading at around $40,000, and is now trading near $94,000.
Clearly, cryptocurrencies remained as volatile as ever throughout the year, with significant fluctuations. For those concerned about the volatility of this space, investing in traditional stocks may 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.
Both companies went public in early 2021 and have followed similar paths ever since. After a strong initial performance, their stock prices went down after the changes in the macroeconomics and the collapse of the crypto markets at the end of 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 nearly 200% on the year-to-date charts as well.
Selling interest to push Coinbase and Robinhood Higher?
With the broader market trends pointing to a bullish 2025, more people may enter the market using trading apps like Robinhood and Coinbase. Analysts believe that Bitcoin could shoot past $120,000 soon, and those who want to join the rally must rely on these companies.
When Bitcoin and other cryptocurrencies rose, retail investors flock to trading platforms, encouraging more app downloads.
Recently, Coinbase took ninth place in the global app ranking, 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 increase 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 extremely proud of our Q3 results and how smoothly our production engine is rolling. Last month, we introduced Robinhood Legend, our new desktop offering, and announced the coming of index options, futures, and a realized profit and loss tool. soon. We have a ton of momentum, and we're just getting started,” Tenev said.
Additionally, Coinbase's Q3 total transaction volume has more than doubled year over year to $185 billion.
Robinhood and Coinbase won't report their Q4 earnings until February. However, strong returns can be expected due to the market boom fueled by the massive Bitcoin rally in November, especially after Donald Trump's election victory.
Separately, Coinbase's Base blockchain added 13.7 million users in October 2024, surpassing giants like Ethereum and emerging as the fastest growing blockchain.
All in all, both companies seem poised to make a big impact on the stock and crypto markets in 2025. However, there are also challenges to overcome.
For example, Coinbase was sued for $1 billion after the company decided to stop trading Bitcoin Wrapped in December.
Denial
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