July 31 (Reuters) - Coinbase Global ( COIN ) reported a

sharp rise in second-quarter profit on Thursday, as gains in its

subscription and services business offset a dip in trading

revenue.

Retail trading volumes remained sluggish in the second

quarter as investor appetite remained muted amid regulatory and

market uncertainty, despite a rebound in crypto prices.

A bullish crypto market also prompted many retail

investors to hold on to their digital assets in anticipation of

higher returns, limiting trading activity.

Transaction revenue fell 2% to $764.3 million. However,

revenue from the company's subscription and services unit -

which includes businesses outside of trading - rose 9.5% to

$655.8 million.

Net profit attributable to common stockholders rose to $1.43

billion, or $5.14 per share, in the three months ended June 30,

compared with $36.13 million, or 14 cents apiece, a year

earlier.

Net profit was largely driven by gains on the fair value

remeasurement of the company's investment in stablecoin issuer

Circle and gains on its crypto asset investment

portfolio, Coinbase said.