Coinbase stock surges after JPMorgan upgrade on Base, USDC potential

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JPMorgan sees Coinbase unlocking billions done its Base layer-2 web and USDC rewards overhaul, lifting its terms people and fueling a crisp banal rally.

Coinbase banal surges aft JPMorgan upgrade connected Base, USDC potential

Shares of Coinbase Global Inc. (COIN) rallied sharply connected Friday aft JPMorgan Chase upgraded the cryptocurrency exchange, highlighting caller monetization opportunities tied to its Base web and USDC payout strategy.

The bank’s analysts lifted their standing to “Overweight” from “Neutral” and raised their terms people to $404 per share, implying astir 15% upside from existent levels.

JPMorgan said Coinbase is “leaning into” its Base layer-2 blockchain and exploring ways to amended seizure worth from the platform’s growth.

The slope estimated that the launch of a Base token could correspond a $12 cardinal to $34 cardinal marketplace opportunity, with Coinbase’s retained stock perchance worthy $4 cardinal to $12 billion. Analysts noted that the token’s organisation would apt prioritize developers, validators and the Base community.

The study besides pointed to borderline enlargement imaginable from changes to Coinbase’s USDC (USDC) rewards program. JPMorgan said Coinbase whitethorn trim involvement rewards for astir users portion offering them chiefly to Coinbase One subscribers — a determination that could adhd astir $374 cardinal successful yearly net astatine existent USDC yields and involvement rates.

Following the upgrade, COIN shares surged much than 9% connected Friday to astir $353. The banal is present up astir 42% year-to-date, lifting Coinbase’s marketplace capitalization to astir $90.6 billion.

Coinbase net successful the spotlight

Coinbase is acceptable to study third-quarter results connected Oct. 30. According to Zacks Investment Research, analysts expect the institution to station net of $1.06 per share, up 71% twelvemonth implicit year, connected gross of $1.74 billion, a 44.1% summation from the aforesaid 4th past year.

The upcoming study follows a mixed 2nd quarter, erstwhile Coinbase missed net expectations but achieved respective operational milestones, including rising stablecoin balances and higher stablecoin-related revenue.

The institution has been placing increasing accent connected its subscription and services segment, which is projected to lend $665 cardinal to $745 cardinal successful the 3rd quarter.

Among the quarter’s cardinal developments, Coinbase highlighted the support of the GENIUS Act, which established a wide regulatory model for US stablecoin adoption, on with House transition of a broader marketplace operation measure seen arsenic a measurement toward clearer crypto regulation.