Who Are Coinbase's Competitors?

Coinbase COIN is one of the most highly anticipated IPOs the market has seen in some time. The company is going public with strong interest and an increased valuation for Bitcoin BTC/USD, the largest cryptocurrency by market cap.

Coinbase reported year-over-year revenue growth of more than 800% in the first quarter. The company had 56 million verified users globally and 6.1 million monthly transacting users in the first quarter. The company's first-quarter revenue of $7.2 billion greatly outpaced the entire 2020 total of $1.3 billion.

Coinbase has a more than 11% market share of the entire cryptocurrency market capitalization, with $223 billion in customer assets.

The company offers 48 cryptocurrencies for trade and even more for its Coinbase Pro customers.

Here's a look at some of the biggest competitors to Coinbase.

Voyager: Voyager Digital VYGVF offers commission-free trading on over 50 cryptocurrencies. The company says it has more choices for its customers than Coinbase. Voyager also offers up to 9.5% interest APR on 17 of its leading digital assets through the Voyager app.

Voyager is available to residents in the U.S. and U.S. territories with planned expansion into Canada and Europe in the future.

In March, Voyager had over $2.4 billion in assets under management and $650 million in net deposits. Over 95,000 new accounts were opened in March and a total of 395,000 new verified users were recognized for the month. Voyager has over 1 million verified users.

Binance: Created in 2017, Binance is one of the world’s largest cryptocurrency exchanges. The company has over $2 billion in average daily volume and more than 1.4 million trades completed every second.

While Binance is not publicly traded, a digital token called binance coin (BNB) has risen 14x in price in 2021. Binance coin offers no equity ownership rights but is an exchange token that many connect to the success of Binance.

Binance offers trading in 39 cryptocurrencies.

Gemini: Founded in 2014 by Cameron and Tyler Winklevoss, Gemini is one of the largest and most well-known cryptocurrency exchanges in the U.S. The platform offers access to over 20 cryptocurrency coins and tokens.

The company is expanding globally with plans to grow in Europe and Asia. Along with its trading platform, Gemini offers insured hot wallets to store tokens without worrying about digital asset theft.

Gemini customers can earn up to 7.4% APR on some of the crypto assets offered. Gemini is also the owner of the NFT marketplace Nifty Gateway.

eToro: In 2013, eToro launched Bitcoin trading on its platform. The social investment platform offers trading in Bitcoin, Ethereum ETH/USD, Ethereum Classic, Dash, Litecoin LTC/USD, Bitcoin Cash, Stellar Lumens, NEO, EOS, Cardano, IOTA, TRON, ZCASH and Tezos.

In 2020, 16% of eToro’s assets were in cryptocurrencies. The company added over 5 million new registered users in 2020. As of March 2021, eToro had over 20 million registered accounts, but not all were trading cryptocurrencies.

eToro is a large international social trading and cryptocurrency platform. The company plans to launch stock trading in the U.S. market in 2021 to complement its existing crypto and social trading, which could increase its customer count in the region.

eToro is going public in a SPAC merger with FinTech Acquisition Corp V FTCV valuing the company at $10.4 billion.

Robinhood: Known for its commission-free stock trading, Robinhood also offers commission-free cryptocurrency trading. Robinhood launched cryptocurrency trading in 2018 with an initial rollout to five states.

Robinhood offers a limited number of cryptocurrency trading offerings. Customers can trade Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic and Litecoin. Robinhood doesn’t support ICOs.

The company provides real-time data on some of the digital assets that are not available for trading.

The ability to buy and sell Dogecoin is one of the things that sets Robinhood apart in crypto. Other large platforms like Coinbase do not currently support the meme cryptocurrency.

Robinhood is nearing plans to go public in an IPO. 

Related Link: 3 Cryptocurrency SPACs That Could Run On A Successful Coinbase IPO

Kraken: Kraken prides itself as being one of the oldest cryptocurrency exchange platforms, with its blockchain interests dating back to 2011. Kraken offers one of the largest selections of tradeable cryptocurrency customers.

In March, Kraken CEO Jesse Powell said the company could go public next year. A recent $10-billion valuation was described by Powell as too low and not worth going public. The company is in talks to raise additional capital in a new funding round.

Cash App: Launched in 2013 by Square Inc SQ, Cash App is one of the best-known platforms to send and receive money to other people.

In 2018, Cash App added the ability to buy and sell Bitcoin. The company reported that it had over 3 million customers buying and selling Bitcoin in the recent fourth quarter. In January, Cash App had over 1 million new Bitcoin customers.

Paypal: Online payments company Paypal Holdings PYPL began offering a way for its customers to buy and sell cryptocurrencies in 2020. The company calls its offering “crypto for the people” and allows its users to get started with as little as $1.

Paypal customers can buy and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The company is working on integrating its cryptocurrency offerings with its merchants to allow customers and businesses to be able to utilize cryptocurrencies for transactions.

Photo courtesy of Cash App.