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XRP has officially overtaken Ethereum (ETH) as the second-largest revenue generator on Coinbase, marking a major shift in investor focus and market dynamics. This milestone, disclosed in Coinbase’s latest Q2 2025 earnings report, reveals that XRP contributed 16% of total transaction revenue in the first half of the year, surpassing Ethereum’s 15%. The news signals growing institutional interest in XRP amid regulatory clarity and an aggressive push into U.S. crypto derivatives.
XRP Climbs to the Top on Coinbase
Coinbase’s Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC) on July 31 showed that XRP outperformed Ethereum in trading revenue. While Ethereum has long held the second spot behind Bitcoin in terms of transaction volume and revenue, XRP’s comeback has been strong. This performance is even more significant given that just a year ago, XRP wasn’t even included as a separate entry in Coinbase’s earnings breakdown.
This revenue surge is attributed to increasing spot trading activity and renewed investor confidence in XRP following legal clarity. A federal court ruling in 2023 concluded that XRP is not a security when traded on exchanges. This judgment prompted Coinbase and other major platforms to relist the token, which had been delisted in 2021 due to Ripple’s legal battle with the SEC.
Legal Clarity Sparks XRP Revival
The favorable court decision in 2023 has had a lasting impact. With the legal uncertainty lifted, retail and institutional traders have returned to XRP in large numbers. This is reflected in its growing share of Coinbase’s transaction revenue—13% in Q2 alone, compared to Ethereum’s 12%.
Ryan Rasmussen, Head of Research at Bitwise Asset Management, pointed out the remarkable turnaround, noting on social media platform X: “Wow, XRP trading accounted for more of Coinbase’s trading revenue this year than ETH trading. Last year XRP wasn’t even broken out.”
This shift also aligns with broader regulatory efforts to define digital assets more clearly, giving U.S. investors greater confidence in engaging with tokens like XRP.
Derivatives Growth Boosts XRP Momentum
Coinbase is also betting big on the growth of crypto derivatives, especially in the U.S. market, where such products are still gaining traction. In its shareholder letter for Q2 2025, Coinbase emphasized that while 75% of global crypto trading volume comes from derivatives, the U.S. accounts for only a small fraction. This gap represents a major growth opportunity.
Coinbase Derivatives is now the first U.S.-regulated futures exchange to offer 24/7 trading for BTC, ETH, SOL, and XRP. Notably, weekend volumes are rapidly catching up with weekday trading levels, showing increasing demand for continuous trading options. This change could help level the playing field for U.S. investors who often face limited access compared to global markets.
On August 18, Coinbase is set to start nano XRP U.S. perpetual-style futures. These products are designed for retail investors who want access to XRP futures with smaller contract sizes and greater flexibility. The addition expands Coinbase’s growing suite of perpetual-style products, enhancing market access for both retail and institutional participants.
What This Means for XRP Going Forward
XRP’s rapid rise on Coinbase signals more than just a short-term trading spike. It reflects a fundamental shift in how the asset is perceived in the U.S. market. With regulatory concerns easing and new financial instruments expanding access, XRP is poised to become a key player in the crypto trading ecosystem.
For Ethereum, the loss of second place on Coinbase might be temporary, but it underscores the growing competition among altcoins. Ethereum continues to lead in decentralized finance and smart contract activity, but trading revenue trends suggest investors are diversifying their portfolios.
In the coming months, XRP’s performance—particularly in the derivatives space—will be closely watched. If the momentum continues, it may solidify its position as a top-traded asset not just on Coinbase but across other platforms as well.
