Coinbase, one of the world’s leading cryptocurrency exchanges, sold 12,652 Ether (ETH) in the fourth quarter of 2024, according to a March 19, 2025, analysis by Standard Chartered Bank. Valued at approximately $25 million at current prices—or $37 million at Q4 averages—this transaction has drawn attention to Coinbase’s operational strategy and its impact on Ethereum’s market dynamics. Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, detailed the sale in a note, framing it as part of a broader pattern of risk-adjusted profit-taking. This move has fueled discussions about Coinbase’s priorities and Ethereum’s trajectory amidst a shifting blockchain landscape.
A Calculated Sell-Off
The sale of 12,652 ETH, reflects Coinbase’s activities during a period when Ether’s price peaked around $4,000 before dropping to $2,000 by early 2025. Kendrick’s analysis, based on Coinbase’s quarterly filings, indicates the exchange net bought ETH in Q3 2024 at an average of $2,500 and net sold in Q4 at higher prices. “This tells me Coinbase acts like any risk-adjusting profit maximiser would do,” Kendrick wrote, suggesting a deliberate strategy to capitalize on price swings rather than hoard ETH long-term.
The transaction ties to Coinbase’s Layer-2 network, Base, launched post-Dencun upgrade in March 2024 to enhance Ethereum scalability. Base generates profits in ETH from sequencer fees, estimated at 7,417 ETH ($24 million) in Q4 by Coin Metrics. Kendrick calculated net sales by subtracting Base’s ETH profits from changes in Coinbase’s holdings, arriving at a three-quarter net sell-off of 1,558 ETH, with Q4’s 12,652 ETH as the largest chunk.
Coinbase countered this narrative, that ETH sales primarily fund operations—covering taxes, salaries, grants, and acquisitions—not speculative trading. A spokesperson emphasized, “ETH we earn is primarily held for long-term investment or used for operational expenses… Our ETH held for investment grew 20% over 2024,” rejecting claims of routine profit-taking.
Ethereum’s Market Context
Ethereum’s price has faced headwinds in 2025, trading at $1,903 on March 17 and rebounding to around $2,000 by March 20. This follows a 42% year-to-date decline from 2024 highs. Standard Chartered slashed its 2025 ETH target from $10,000 to $4,000, citing Base’s $50 billion drain on Ethereum’s market cap as L2s siphon fees from the mainnet.
Kendrick’s note ties Coinbase’s sales to this “structural decline.” Base’s profitability—driven by low-cost transactions post-Dencun—redirects revenue to Coinbase rather than Ethereum, reducing the mainnet’s “blockchain GDP” (fee-based economic activity).
Coinbase’s Broader Role
Coinbase’s Q4 sale comes amid its expanding footprint. The exchange beat profit estimates in Q4 2024, driven by a crypto trading surge post-U.S. election, though trading volumes later softened. Its Base network has thrived, handling over 2 million daily transactions by February 2025 (Dune Analytics), reinforcing Coinbase’s dual role as an exchange and infrastructure provider. On March 19, Coinbase also became Ethereum’s largest node operator, staking 3.84 million ETH (11.42% of the network) with 99.75% uptime, amplifying its influence.
This selling ETH while staking heavily—puzzles observers. The 12,652 ETH sold is a fraction of its $6.8 billion stake, suggesting operational liquidity needs rather than a strategic pivot.
For Ethereum enthusiasts, Coinbase’s move stings—a trusted player cashing out as ETH struggles feels like a gut punch. Yet, for Coinbase’s team, it’s pragmatic: balancing growth with stability in a volatile market. Investors might see a savvy play—selling high after buying low—while purists lament any drift from crypto’s hold-forever ethos. It’s a tension as old as markets themselves: profit versus principle.
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