FTCVW - Staking PFOF and commissions: A look at how Coinbase Robinhood and other cryptocurrency platforms make money

Revenue from cryptocurrency transactions at brokerage firms has surged the last few months as the price of bitcoin grew roughly 62% in July and August after falling from highs of over $60,000 and dogecoin's price jumped to 72¢ in May before plummeting over 50% over the next few months. Firms benefit from the higher crypto prices and volatility. "90% of our revenue is heavily correlated with the price of crypto and then the volatility of crypto," said executives from Coinbase (NASDAQ:COIN), the largest cryptocurrency exchange in the United States by trading volume. Coinbase makes 82% of its money through transaction fees, which can vary depending on the coin and volume. At Coinbase, transaction volumes for bitcoin are falling while those for Ethereum, an important underlying blockchain in the DeFi and NFT ecosystems, are on the rise. Other revenue streams include custodial fees based on a percentage of assets for securely

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Staking, PFOF, and commissions: A look at how Coinbase, Robinhood, and other cryptocurrency platforms make money