Does Coinbase Have a Diversification Problem?

• Coinbase's revenues have diversified away from trading fees, which used to account for over 90% of its revenues.
• In its most recent quarterly earnings report, Coinbase reported revenues of $707 million, with $327 million coming from spot trading.
• Other business lines, such as subscription fees, wallet services, staking, and on-chain scaling services, are becoming a larger share of Coinbase's revenues.
• Coinbase has historically been able to charge higher trading fees due to its reputation and limited competition in the U.S. market.
• Coinbase's growth potential is limited due to its reliance on the U.S. customer base and recent setbacks in global expansion.
• Despite listing over 600 asset pairs, coins and tokens listed earlier in Coinbase's history, like Bitcoin and Ethereum, still account for the majority of trading volumes.

The sentiment of the article is mixed. It highlights Coinbase's efforts to diversify its revenue streams and explores potential growth opportunities. However, it also raises concerns about Coinbase's limited runway for growth and its reliance on the U.S. market.