U.S. cryptocurrency exchange Coinbase Global Inc on Tuesday beat market estimates for second-quarter profit boosted by a near 38% jump in trading volumes on a sequential basis, but forecast a drop in current-quarter volumes.

Coinbase, which has benefited from growing adoption of digital assets, said the reported quarter illustrated the volatility it had anticipated in the still-early days of the cryptoeconomy.

Trading volumes rose to $462 billion for the quarter ended June 30, from $335 billion in the quarter ended March. Bitcoin trades comprised 24% of Coinbase's trading volumes for the quarter, down from 39% in the first quarter.

However, for the third quarter, it expects trading volumes to be lower than the second quarter, as August month-to-date volumes have improved compared to July, but remain lower than what was seen earlier in the year.

Coinbase's second-quarter total revenue rose to $2.23 billion from $186.38 million a year earlier, helped by growth in trading volumes and numbers of users on its platform.

Global financial and other institutions have generously invested in growing their crypto asset offerings and developing business units tailored to look at such offerings for their clients.

The crypto exchange posted net income attributable to common shareholders of $1.59 billion, or $6.42 per share, for the second quarter.

On an adjusted basis, it earned $3.45 per share. Analysts were expecting a profit of $2.33 per share, according to IBES data from Refinitiv.

One of the largest cryptocurrency exchanges in the world, Coinbase went public through a direct listing in April and saw its valuation surge to as high as $112 billion on its first day of trading.

  - Reuters