Coinbase CEO, Brian Armstrong. Photo by Anthony Harvey/Getty images for TechCrunchAfter the cryptocurrency exchange's 2Q revenue estimates, Coinbase stock rose by 4% WednesdayQuarterly revenue rose 27% to $2.2 billion versus analysts' expectations of $1.78 billion.Coinbase listed Elon Musk, Tesla and SpaceX as clients along with 10% of the largest hedge fund managers.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Premarket trading on Wednesday saw Coinbase stock rise 4% after the crypto exchange reported second quarter earnings that exceeded analyst expectations. This was boosted by an increase in trading volumes and volatility.The US's largest cryptocurrency exchange posted total revenue of $2.2 Billion for the second quarter. $1.9 Billion was transaction revenue, and $2.2 billion came from subscriptions and other services.These are the key figuresRevenue: $2.2 Billion compared to $1.78 Billion expected by Refinitiv analysts.EPS: $3.45 per share versus $2.33 per share expectedTrade volumes: $462 Billion versus $335 Billion in the first quarterCoinbase revealed that it also counts Elon Musk, Tesla and SpaceX among its clients along with 10% of the 100 largest hedge funds.Musk, Tesla CEO and SpaceX CEO, stated in March that even Dogecoin should be included to Coinbase. This was in response to the rumor that Tesla was purchasing its bitcoins on the platform. Coinbase listed the meme-inspired asset in June.Coinbase stock rose as high as $279.36 Wednesday's premarket session. This is a significant increase from Tuesday's closing value of $269.67.According to the company, volatility in crypto-asset markets had a positive impact on its quarterly profits. This was because buyers and sellers traded more to make money from these moves. After hitting their all-time highs last spring, the leading digital currencies bitcoins and ether have both fallen more than 45% this year.Coinbase released a statement saying that volatility and crypto-asset price are closely correlated to trading revenue. Therefore, our Q2 financial results were heavily influenced by the crypto market environment.Ether accounted for 26% of total trading volume on the exchange, surpassing bitcoin's 24%. The total retail trading volume was $145 billion, an increase of 21% over the quarter before.CoinbaseCoinbase stated that ether's growth was driven by growing interest in Decentralized Finance (DeFi), non-fungible token ecosystems (NFT), and the 2.0 upgrade to the ethereum Blockchain Network.The exchange stated that it believes that mainstream customers will soon be able to use the DeFi products that crypto-forward individuals are using, as well as institutions, soon.From the first quarter, the number of retail users who transacted at least once per month (known as MTUs) grew 44% to 8.8million in the three months to June. Coinbase stated that the number of MTUs declined in July, as trading volume dropped and volatility fell significantly compared to Q2 levels. The exchange anticipates that trading volumes will be lower for the third quarter.In an earnings call, CEO Brian Armstrong stated that Coinbase wanted to be the "Amazon of assets", listing all legal crypto assets. In the second quarter, it added 22 assets."There are thousands of them right now. He said that eventually there will be millions of them.Read More: A 20 year-old crypto market-maker explains why ether is displacing Bitcoin as the 'king cryptocurrency'.
