Key Insights:
- Dexter AI secures over 50% of the x402 transaction volumes, stealing the lead from Coinbase.
- Why the X402 space is gaining popularity and why it matters.
- Coinbase CEO reveals details of the company’s plan to become the “everything” exchange.
Coinbase may have pioneered the X402 open HTTP-based protocol, and has been dominating this new segment. However, its dominance has been snuffed out by Dexter AI.
Dexter AI has reportedly dethroned Coinbase to secure the lead as the dominant player in X402 transactions. Dexter AI now controls over 50% of X402 transactions.
Coinbase loses X402 transaction, lead to Dexter AI/ Source: X courtesy of Wu BlockchainThe fact that Coinbase is no longer the dominant player in the segment was noteworthy. This was particularly because Coinbase pioneered the X402 protocol.
Nevertheless, the new shift in favor of Dexter AI signaled that the segment has been growing rapidly. This means it is starting to pick up the pace outside Coinbase’s sandbox, indicating growth for the segment.
The 4 key players in the segment have reportedly pushed over $10 million in processed transactions so far.
Why are the X402 Transactions Important for Coinbase and the Crypto Market in General?
The fact that X402 transactions are increasing is a significant milestone for the cryptocurrency market. If you have been keen on key narratives that played out in 2025, then you likely encountered the concept of AI agents.
Some market experts believe that this could become one of the hottest narratives of 2026 as AI continues to unfold. X402 transactions could serve as the bridge that enables AI agents to execute transactions between machines via smart contracts.
In other words, the X402 protocol represents the conduit for crypto-based machine-to-machine transactions to become a reality.
Coinbase played a critical role by pioneering the protocol. However, Dexter AI, DayDreams, and PayPal have been experiencing significant growth in X402 transactions.
The growth achieved by these four main players so far may be seen as a proof of concept. They are the 4 horsemen leading the micropayments charge to enable the actualization of the AI agents’ economy.
Coinbase’s New Push to Dominate Everything
Cryptocurrencies have predominantly been the main assets on crypto exchanges. However, 2025 was a pivotal year for the markets, laying the groundwork for real-world assets to transition onto-chain.
This means crypto exchanges can potentially offer tokenized stocks, thus expanding their offerings. Interestingly, Coinbase execs are interested in pursuing this path.
Coinbase CEO Brian Armstrong recently revealed 2026 expansion plans beyond cryptocurrencies. The exchange will reportedly venture into equities, commodities, and derivatives.
Coinbase 2026 expansion vision/ source: X courtesy of the Coin BureauBrian Armstrong also revealed that the expansion will not just happen in the U.S but also across the globe. In other words, Coinbase could potentially play a major role in making U.S. markets more accessible globally.
This shift highlights the massive role that blockchain technology will play in homogenizing global access in industries that previously struggled with limited access.
By pursuing this path, the Coinbase exchange will be well-positioned to capitalize on significant growth opportunities. It will thus benefit in terms of user growth, which directly translates to more revenue down the road.
This pursuit may also put the Coinbase stock in the bullish crosshairs. 2025 was an overall bearish year for the stock. It tanked by over 8% from its opening to closing price for the year.
Figure 1 Coinbase stock price/ source: TradingViewThe replacement was courtesy of the stock’s bearish price action in the last 6 months. Before that, the Coinbase stock price was on a rally that kicked off in 2023.
Source: https://www.thecoinrepublic.com/2026/01/02/dexter-overtakes-coinbase-as-top-x402-facilitator/
