Coinbase (COIN), the largest cryptocurrency exchange in the US, has experienced a significant decline in its stock valuation, dropping nearly 40% from its peak of $444 in July to its current trading level of around $271 per share. This, amid market fluctuations and heightened volatility in the broader crypto market, impacting the exchangeโs stock performance.
Bernstein Forecasts New Bullish Phase For Coinbase
Despite these challenges, analysts at Bernstein hold an optimistic outlook on Coinbaseโs stock price, suggesting a potential new bullish phase that could propel COIN to surpass previous all-time highs and reach levels above $500.ย
Bernstein maintains a price target of $510 on Coinbase, underlining the exchangeโs shift from a trading-centric platform to what analysts dub an emerging โeverything exchange.โ
Related Reading
Analysts led by Gautam Chhugani highlighted the delicate market conditions, citing crypto price fluctuations influencing listed crypto-exposed equities.ย
However, Bernstein distinguishes the current market environment from past crypto downturns, noting that speculative excess primarily affects what they refer to as โMSTR copycats,โ referencing Strategyโs (previously MicroStrategy) stock performance.ย
Central to Bernsteinโs bullish thesis is Coinbaseโs strategic diversification away from volatile spot trading revenue. They assert that exchange is evolving into a comprehensive financial platform.
The analysts emphasize that clearer regulatory guidelines in the US could drive a revaluation of these business lines, bridging the gap with offshore competitors benefiting from faster token listings and fundraising fees.ย
Coinbaseโs foray into token issuance through a launchpad-style model, exemplified by Monadโs (MON) recent listing, demonstrates growing market interest. Bernstein notes that these launches, directly influencing trading activity, can stimulate a cycle of issuance, listing, and heightened trading volume.
Confident Ratings For COIN
Looking ahead, one of the exchangeโs most notable catalysts is the upcoming product showcase on December 17, anticipated to unveil developments in tokenized equities, prediction markets, and other tools expanding the exchangeโs offerings beyond spot crypto trading.ย
The integration with Deribit is also expected to further bolster Coinbaseโs derivatives expansion, positioning the exchange closer to platforms like Robinhood as both entities diversify their product offerings.
Related Reading
On the consumer front, the exchangeโs Base app, focusing on wallet services, payments, and social features, acts as a centralized access point for the broader token markets, reaffirming the analystsโ bullish predictions.ย
Bernsteinโs reaffirmed โBuyโ rating on Coinbase with a massive $510 price target underscores the firmโs confidence in COINโs growth trajectory. Monness Crespiโs recent upgrade from โNeutralโ to โBuyโ with a $375 target further adds to the bullish sentiment surrounding the stockโs valuation amid falling prices.ย
Featured image from DALL-E, chart from TradingView.comย
