Analysts agree diversification is necessary, but differ on how quickly it can stabilize revenues
US-based crypto exchanges Coinbase and Gemini are drawing mixed reactions from analysts as both platforms expand beyond traditional spot crypto trading into broader financial services. While diversification is widely seen as essential, opinions vary on whether these new business lines can meaningfully reduce earnings volatility in the near term.
Coinbase Pushes Toward a Broader Financial Platform
Coinbase as it builds out offerings in equities trading, derivatives, prediction markets, and payments infrastructure. The company’s strategy is aimed at repositioning itself as a core piece of digital financial infrastructure, rather than a platform dependent on retail crypto trading volumes.
Although spot trading activity remains soft, analysts believe non-trading revenue and derivatives could become more durable growth drivers over time. Coinbase’s expanding role in stablecoin infrastructure and institutional services is also viewed as a potential buffer against crypto market downturns.
Gemini Bets on Payments and Prediction Markets
Gemini is also diversifying, recently launching a prediction market and expanding its crypto-linked payments and spending card operations. Analysts note that its card products are creating a “flywheel effect,” drawing users deeper into the platform and supporting exchange activity.
While some firms maintain bullish outlooks on Coinbase’s scale and Gemini’s user growth, others remain cautious. Concerns include continued exposure to crypto price swings, regulatory risk, and margin pressure. Surveys suggest investors remain split on whether crypto-native exchanges will be top or bottom performers in 2026.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.