Coinbase Stock Rises Sharply Following JPMorgan Upgrade Suggesting Base and USDC Growth
Coinbase shares see a significant jump after JPMorgan Chase identifies new opportunities in its layer-2 network and USDC rewards strategy, increasing their target price for the stock.
Shares of Coinbase Global Inc. (COIN) soared on Friday after JPMorgan Chase upgraded the cryptocurrency exchange, citing new revenue possibilities linked to its Base network and USDC reward system.
The bank’s analysts increased their rating from “Neutral” to “Overweight” and raised the target price to $404 per share, suggesting about a 15% upside from current levels.
JPMorgan indicated that Coinbase is actively developing its Base layer-2 blockchain, looking for ways to capitalize on the platform’s potential growth.
They estimated that the potential launch of a Base token could translate into a market opportunity ranging from $12 billion to $34 billion, with Coinbase’s share possibly being valued between $4 billion and $12 billion. Analysts pointed out that the token’s distribution would predominantly benefit developers, validators, and the Base community.
Additionally, JPMorgan’s report suggested that changes to the USDC rewards program might lead to higher earnings for Coinbase, projecting up to $374 million annually in earnings from reduced rewards primarily for Coinbase One subscribers.
Following this upgrade, COIN shares jumped over 9% on Friday, bringing the stock price to around $353. This marks a 42% increase year-to-date, raising Coinbase’s market value to approximately $90.6 billion.
Coinbase (COIN) stock. Source: Yahoo Finance
Related: Coinbase invests $25M in reviving a past crypto podcast
Upcoming Coinbase Earnings
Coinbase is scheduled to announce its third-quarter results on October 30. According to Zacks Investment Research, analysts anticipate earnings of $1.06 per share—up 71% year-on-year—on revenue of $1.74 billion, marking a 44.1% increase from the same quarter last year.
This announcement follows a mixed second quarter in which Coinbase missed earnings expectations yet achieved several operational milestones, including increasing stablecoin balances and related revenues.
The company has been focusing more on its subscription and services segment, which is expected to generate between $665 million to $745 million in the third quarter.
Among the significant developments this quarter, Coinbase has highlighted the approval of the GENIUS Act, which establishes a clear regulatory framework for US stablecoin usage, alongside the House passing a comprehensive market structure bill seen as a positive step toward clarifying crypto regulation.
Related: Coinbase CEO announces ‘private transactions’ coming to Base
