Crypto companies are speeding up revenue diversification as trading income falls on slower prices for bitcoin (BTC) and ether (ETH). They are moving away from trading-centric business models. Exchanges, brokers and stablecoin firms are expanding into derivatives, prediction markets and financial infrastructure to counter the market downturn.

CNBC reported on May 20 that first-quarter results showed the crypto industry has entered a phase in which it must prove a more stable revenue structure after moving beyond reliance on overheated markets and speculative demand.

In the first quarter, falling bitcoin and ether prices and risk-off sentiment amid macroeconomic uncertainty slowed trading and staking income across exchanges and crypto finance firms. Retail investor participation also declined. Listed companies saw both lower trading volumes and weaker customer activity.

Coinbase and Robinhood are stepping up strategic shifts to reduce reliance on trading. Crypto trading fees were once their main revenue source, but they have recently focused on spreading revenue by widening the scope of financial services. Vasilis Tziokas (바실리스 치오카스), vice president of growth at Matter Labs, said, "Crypto is now moving to a stage where it is more closely connected to the real economy." He said companies must expand into adjacent businesses and diversify their revenue structure.

Robinhood fell short of expectations this earnings season as crypto trading revenue plunged 47 percent from a year earlier. Revenue from its event contracts segment instead rose 320 percent to $147 million. This is seen as user activity shifting from trading to other financial products.

Coinbase also missed market expectations for both revenue and net profit, but growth in non-trading businesses continued. Event contracts, crypto derivatives and tokenised commodities businesses expanded. In particular, crypto derivatives revenue rose 169 percent from a year earlier. Alesia Haas, Coinbase chief financial officer, said, "We are trying to sustain demand amid changing market conditions by diversifying tradable assets and products." She said such diversification helps reduce volatility in pure crypto trading revenue.

Gemini, led by the Winklevoss twins, is also expanding into prediction markets and derivatives, and later into stock trading. Revenue related to consumer credit cards rose 292 percent from a year earlier. Cameron Winklevoss, Gemini co-founder, said, "The goal is to move from a crypto-focused company to a financial platform connected to the broader market."

Bullish is also cited as an example of changing its revenue structure by expanding its scope. Bullish is pursuing the acquisition of global relocation agency Equity as it seeks to transform beyond an exchange into a capital markets infrastructure company. Circle has also moved to secure long-term growth drivers by unveiling Arc Blockchain, an AI and blockchain convergence platform, beyond its stablecoin business.

Crypto treasury strategy firms have also begun revising existing strategies. Strategy moved away from its long-held stance of "never selling bitcoin" and said it would manage holdings more actively depending on market conditions. The company said in its recent earnings release that it posted a net loss of $12.5 billion due to the impact of bitcoin’s price decline.

Sharplink has shown a similar trend. Sharplink, an ether accumulation company, said it will work with Galaxy Digital to allocate some capital to an on-chain strategy aimed at more active management. Wall Street is assessing this as an attempt at differentiation beyond a simple buy-and-hold strategy.

The market is increasingly viewing the crypto industry as having entered a stage where it can no longer rely only on trading fees. Building a structure that can generate stable revenue even in a quiet market is being seen as a key task for listed crypto firms.