TL;DR
- JPMorgan upgraded Coinbase (COIN) to “overweight” and raised its price target to $404, citing major growth catalysts tied to the Base blockchain and USDC monetization.
- The bank expects a potential $12–34 billion valuation impact from a Base token launch.
- Analysts also see Coinbase strengthening its market position as competition from decentralized exchanges stabilizes, with its diverse business model supporting earnings growth beyond trading revenue.
Wall Street heavyweight JPMorgan has turned bullish on Coinbase, upgrading its rating from “neutral” to “overweight” while lifting the target price to $404. The move, revealed in a note to clients, triggered an immediate rally in Coinbase stock, up more than 8% in early trading at around $349. The bank’s analysts credited new monetization strategies and lower competition risks as key reasons for renewed optimism.
Base Token Could Unlock Billions In Value
JPMorgan’s report highlighted two transformative opportunities, the creation of a Base token and enhanced monetization through USDC. The Base network, launched in 2023, has quickly become a leading Layer 2 platform, processing over 60 million transactions per month and attracting developers from across the Ethereum ecosystem.
The bank’s analysts suggested that a Base token could significantly expand Coinbase’s ecosystem and valuation. Their projections indicate that Base could reach a market capitalization between $12 billion and $34 billion, with up to $12 billion directly benefiting Coinbase. This would further strengthen the company’s financial position while reinforcing Base’s role as a vital growth driver for the exchange’s infrastructure.
Monetizing USDC Through Coinbase One
Beyond the Base token, JPMorgan pointed to Coinbase’s initiative to deepen USDC integration through its subscription service, Coinbase One. By offering around 4% annual yields on USDC holdings, Coinbase is positioning itself as a bridge between traditional finance and decentralized returns. Analysts estimate that this strategy could add roughly $1 per share in annual profit, signaling a sustainable revenue path less reliant on volatile trading volumes.
JPMorgan also highlighted how this model aligns with broader trends in crypto adoption, as investors increasingly seek yield opportunities tied to stable assets.
Competition from decentralized exchanges (DEXs) appears to be stabilizing, allowing Coinbase to consolidate market share. JPMorgan emphasized that the company’s diversified structure — combining exchange, brokerage, custody, and staking — gives it resilience even if transaction fees decline.
In its valuation framework, the bank applied a 50x multiple on projected 2027 earnings, incorporating $4 billion in potential value from Base-related initiatives. By focusing on infrastructure innovation and stablecoin profitability, JPMorgan signaled confidence that Coinbase’s next growth phase will extend well beyond its traditional trading platform.
