Shares of Coinbase Global Inc. (COIN) experienced a significant increase on Friday after JPMorgan Chase upgraded its rating, emphasizing the swing towards new revenue generation opportunities linked to its Base network and USDC payout strategies.

The bank’s analysts upgraded Coinbase from ‘Neutral’ to ‘Overweight’ and adjusted their price target to $404 per share, indicating approximately a 15% potential increase from current valuations.

JPMorgan stated that Coinbase is actively investing in its Base layer-2 blockchain and is seeking effective methods to harness growth from the platform. They estimated that the rollout of a Base token might establish a market opportunity between $12 billion and $34 billion, with Coinbase possibly claiming a share valued between $4 billion and $12 billion. Analysts also noted that the token’s distribution would likely favor developers, validators, and the Base community.

Additionally, the report highlighted the prospect of margin expansion associated with Coinbase’s adjustments to their USDC (USD Coin) rewards program. JPMorgan suggested that Coinbase might taper interest rewards for the majority of users, directing them mainly to Coinbase One subscribers. This change could yield an additional $374 million in annual profits based on current USDC yields and interest rates.

As a result of the upgrade, COIN shares rose more than 9%, reaching around $353. This surge also marks a 42% increase for the stock year-to-date, lifting Coinbase’s market capitalization to an estimated $90.6 billion.

Related: Coinbase splashes $25M to revive a podcast from the last bull run

Upcoming Earnings Report

Coinbase is scheduled to unveil its third-quarter results on October 30. Analysts at Zacks Investment Research predict earnings of $1.06 per share, reflecting a 71% year-over-year rise, with revenue expectations at $1.74 billion, indicating a 44.1% increase compared to the same period last year.

This financial update comes after a mixed second quarter where Coinbase fell short of earnings expectations but reached notable operational milestones such as increased stablecoin balances and revenue.

The company has intensified its focus on its subscription and services segment, which is anticipated to yield between $665 million and $745 million in the third quarter.

Major developments for the quarter include the approval of the GENIUS Act, establishing a regulatory framework for US stablecoin adoption, complemented by the House’s approval of a broader market structure bill advocating clearer crypto regulations.

Related: Coinbase CEO reveals ‘private transactions’ are coming to Base