Bank of America has recently elevated its rating on Coinbase from “neutral” to “buy,” aligning its stance with Goldman Sachs, noting Coinbase’s increasing involvement in facilitating financial transactions on-chain and its quest to evolve into a comprehensive trading platform.

In a report shared on Thursday, BofA highlighted Coinbase’s diversification from trading to real-world asset tokenization, including stocks and ETFs, along with their entrance into prediction markets, which it believes will enhance their capacity to offer additional products to both current and prospective customers, driving towards a new financial ecosystem.

“While the stock is off 40% from its July highs, under the surface of the 4Q25 crypto correction the company’s product velocity has increased and its total addressable market expanded in parallel.”
Translation: “Despite a 40% drop since July, behind the scenes, Coinbase’s product development has accelerated, alongside an expanding market potential.”

BofA forecasts that shares of Coinbase (COIN) could appreciate by approximately 38%, reaching about $340 as the short-selling pressures ease, and tax-loss selling diminishes following late Q4.

On Monday, Goldman Sachs also designated Coinbase as a “buy” citing that the recent downturn in the market renders crypto stocks more attractive for investors, laying the foundation for a possible rebound in early 2026.

Coinbase Share Volatility Throughout 2025

Over the last 12 months, Coinbase’s stock has seen a decline of 5.6% to $245.6, experiencing highs of $419.8 and lows of $151.8 during the year, reflecting a staggering volatility of 176.6% in price fluctuation.

Price fluctuation graph for Coinbase Change in COIN’s share price over the last month. Source: Google Finance

BofA also emphasized Coinbase’s continuation in innovating their product offerings as a long-term positive factor. The company is not only moving beyond traditional trading but aims to establish an all-encompassing “everything exchange.” Should Coinbase consider launching a token associated with its Base layer-2 network, this initiative could not only generate capital but also prompt developers and early users to create and employ increased blockchain applications, although no official plans for such a token have been disclosed.

In addition, BofA expressed optimism towards Coinbase potentially launching a token for the Base network, estimating this could accumulate billions in funds and further stimulate the development of decentralized applications on blockchain.

Another key driver for Coinbase’s prospects includes the continued presidency of Donald Trump, as he envisions solidifying the U.S. as the global hub for cryptocurrency:

“The world is still in the early innings of crypto adoption, and we see Coinbase as the trusted platform with #1 market share in the US which makes it a perfect TradFi partner.”
Translation: “Crypto adoption is still beginning, and Coinbase stands as the market’s leading trusted platform in the U.S., ideal for traditional finance partnerships.”

Despite this optimistic outlook, BofA also flagged potential challenges that might hinder COIN’s upward trajectory, including the possibility of Binance re-entering the US market and further price corrections in the cryptocurrency sector.

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