• Coinbase price target hiked to $276 from $200.
  • Digital asset adoption continued after the approval of spot bitcoin ETFs, the report said.
  • Risks include the exchange’s ongoing lawsuit with the SEC, Oppenheimer said.

According to a research report published by broker Oppenheimer on Wednesday, Coinbase (COIN) is primed to reap the rewards of blockchain technology’s widespread use in the long term, leading the brokerage to revise its earnings forecast for the cryptocurrency exchange upward.

According to analysts Owen Lau and Guru Sidaarth’s prediction, COIN’s trading volume in the first quarter of 2024 is anticipated to increase by 95% compared to the previous quarter and by 107% when compared to the same quarter a year ago. This significant growth comes following the approval of bitcoin (BTC) spot Exchange-Traded Funds (ETFs) in January, which has continued to fuel the adoption of digital assets.

“Of greater significance, the total value of USD Coin (USDC) has risen by 12% between quarters, reaching a market cap of $28 billion (or $31 billion as of Q1-2024). USDC is a stablecoin issued by Circle, which is supported by Coinbase. The exchange generates interest income from USDC balances held on its platform.”

Due to the optimistic forecast of the business, the broker increased its suggested stock price from $200 to $276 for Coinbase. At the time of publishing, Coinbase shares were up by 2.5%, trading at $258.

Oppenheimer points out that since the beginning of the year, this stock has surged over 100%, in contrast to the S&P 500 index’s modest 6% increase. Despite our caution about short-term market fluctuations, we maintain a optimistic view towards the future adoption of blockchain technology.

Despite the current positive trend, there are still some challenges to consider. The stock’s growth may be robust, but investors should keep an eye on potential risks, the report cautions. Previously forecasted approval of a spot Ethereum (ETH) ETF in May is now considered unlikely by the broker.

The ongoing SEC lawsuit is a lingering concern for the company’s stock. According to the report, we expect this legal dispute to be protracted and ultimately reach the Supreme Court before a resolution is reached.

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2024-04-04 18:00