Coinbase Surges 43% in June, Leading the S&P 500 as Stablecoin Market Narrative Gains Traction
The impressive 43% rise in Coinbase shares has placed the cryptocurrency exchange at the forefront of the S&P 500, driven by developments in the GENIUS Act impacting stablecoin revenues.
Key Points:
- Coinbase’s stock surged by 43% in June, making it the leading performer in the S&P 500 index.
- This rise is attributed to advancements in the GENIUS Act, which has potential revenue implications through stablecoin integration.
- Coinbase’s partnership with Circle, the issuer of USDC, enhances its indirect earnings from Circle’s revenue streams.
Coinbase, a Nasdaq-listed cryptocurrency exchange, has seen its stock rise significantly this month, marking a record performance since it joined the S&P 500 at the end of last month. This increase follows three consecutive months of gains, with shares reaching a peak not seen since their market debut in 2021.
The stock hit around $382 this week but faced a slight adjustment, finishing at $353 with a 0.7% decline in after-hours trading.
In June, the broader S&P 500 index also saw a rise of approximately 5% as geopolitical tensions eased. Notably, progress on the GENIUS Act, which is aimed at establishing regulations for dollar-pegged stablecoins, has shifted investor attention towards stablecoin revenues.
Circle’s market cap recently approached that of Coinbase, bolstered by optimism from this bill. Analysts noted that Coinbase retains all earnings on USDC balances and nearly half of other USDC-related income, providing shareholders with indirect exposure without additional costs.
Despite this impressive stock performance, the average daily trading volume on Coinbase has seen a decline since April.
