Coinbase has surpassed major securities exchanges like Nasdaq and the Hong Kong Stock Exchange in transaction revenue, generating $5.75 billion over the last 12 months compared to Nasdaq's $4.54 billion. Higher fees per transaction have allowed Coinbase to achieve this despite having lower trading volumes. Analysts, such as Mouloukou Sanoh, predict Coinbase could rise to be the third-largest exchange by transaction revenue by 2025, although it may take a decade or more to surpass Nasdaq in trading volume. Coinbase reported a recent quarterly revenue decline, which points to a need for expansion in international markets to boost engagement and revenue. The overall competitive landscape remains dominated by traditional exchanges, highlighting Coinbase's growth potential as it continues to build its international presence and appears bullish under new leadership. Key to the discussion is the difference in revenue structures; as traditional exchanges typically handle higher volumes at lower fees, Coinbase's model focuses on fewer transactions that yield higher fees. This ongoing transformation within the exchange landscape is significant as digital asset demand increases.

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