Coinbase reported an 11% drop in Base layer 2 transaction revenue last quarter, sliding to $47.4 million, even though stablecoin transfers on the network surged sevenfold year-over-year. The company highlighted that Base processed nearly $32 trillion in stablecoin volume over the past 12 months, claiming it leads all blockchains in this metric.
The decline in fees contrasts with Coinbase’s strategy to prioritize low-cost, near-instant settlements on Base. CEO Brian Armstrong explained that while sequencer fees fell from $68 million in Q3 2025, the approach encourages greater USDC adoption, a market where Coinbase captures about half of all economic activity. In fact, stablecoin-related revenue hit $292.1 million in Q2, making up almost half of the company’s total transaction revenue.
Despite these impressive volume figures, Coinbase missed revenue expectations with $1.22 billion for Q2 and posted a third consecutive net loss of $359.5 million. The exchange also shifted focus away from trading volume disclosure, emphasizing its 10.3% share of the global crypto trading market instead. There was no mention of a Base token in the earnings report or call, with Armstrong reiterating plans for gradual decentralization rather than immediate token issuance.
