Coinbase’s prediction markets topped $200 million in annualized revenue in the third quarter of 2026, while the exchange reported sharply contrasting financial results: revenue fell 35% year over year, but net income climbed 66%, largely on unrealized crypto gains.
Revenue totaled $1.22 billion, broadly unchanged from the previous quarter, according to Coinbase’s earnings report released on October 29. Net income reached $719 million, up from $433 million a year earlier, ending three consecutive quarters of losses. Earnings per share came to $2.51.
Among the results was a $715 million gain tied to crypto assets held for investment purposes, up from $424 million recorded in the same quarter a year earlier. Adjusted net income was $78 million.
Coinbase’s prediction markets grow as spot trading slows
Coinbase’s prediction markets recorded 82% quarterly compound growth since launch. Annualized revenue doubled from roughly $100 million in the previous quarter, the company reported.
According to Bernstein analysts, growth in prediction markets and derivatives trading helped compensate for softer activity in spot markets. Coinbase’s spot trading volume fell 8% from the previous quarter to $135 billion, while its crypto trading market share reached 10.7%.
Chief Financial Officer Alesia Haas said subscription and services revenue increased quarter over quarter and represented nearly half of net revenue. She described prediction markets as an additional revenue stream less correlated with crypto volatility.
Stablecoin revenue rose 3% quarter over quarter to $328 million, including $21 million attributable to USDC in corporate balances. Average USDC holdings reached a record $22 billion.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
