Catenaa, Thursday, February 27, 2028-Coinbase reported $400 billion in total trading volume for Q4 2024, matching levels last seen during the 2021 bull market but with a dominant institutional presence. Retail investors accounted for just 21% ($94 billion) of the volume, down from 36% in 2021.
The SEC’s recent dismissal of its case against Coinbase has helped clear regulatory uncertainty, attracting more traditional finance (tradfi) firms into crypto. Institutional traders are now driving activity, expanding beyond Bitcoin (BTC) and Ethereum (ETH) into higher-risk digital assets.
Unlike the retail-driven trading surge of 2021, today’s market structure is shifting, with institutions using more systematic strategies. This shift contrasts with recent speculative retail trends, including memecoins and short-term trading frenzies.
Coinbase’s regulated status and infrastructure make it a key entry point for institutions entering crypto. Analysts say the exchange’s volume metrics will serve as a barometer for institutional adoption, though retail participation could return if market conditions shift.
While regulatory clarity and high trading volumes could accelerate institutional adoption, the sustainability of this trend remains uncertain.
