Coinbase reported total revenues of $2 billion for Q1, falling short of analysts' expectations of $2.12 billion. Net income plummeted 94% from the previous quarter to $66 million, with earnings per share dropping to $0.26 from $4.84. The decline in revenue is attributed to a 19% decrease in trading volume, exacerbated by macroeconomic uncertainties and challenges within the crypto market. Bitcoin's price fell approximately 10% during the quarter, beginning the year at about $83,500. Despite favorable policies for digital assets, including a dismissed lawsuit from the SEC against Coinbase, the trading revenue remained under pressure. The firm generated $1.26 billion from its trading business, representing over 60% of its total revenue. Additionally, Coinbase noted increased revenue from its partnership with Circle, which focuses on stablecoin USDC, adding $297 million in Q1. The company is taking steps to enhance its business resilience, including expanding trading offerings and investing in its layer-2 network, Base.

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