Coinbase stock price has bounced back in the past two years, helped by the ongoing growth of the cryptocurrency industry. COIN bottomed at $31.80 in 2023 as the FTX crisis unfolded. It has now risen to $300, up by 842% from its 2023 lows, giving it a market cap of over $72 billion. The company may continue doing well this year as it faces substantial tailwinds.
Coinbase stock faces tailwinds ahead
The COIN share price is poised to continue rising, helped by key tailwinds in the crypto industry. The most notable tailwind will be the upcoming changes at the Securities and Exchange Commission (SEC), where Paul Atkins will soon take over from Gary Gensler.
Atkins is seen as a more crypto-friendly leader than Gensler, who ruled by enforcement as he sued numerous companies, including Coinbase. Most of the lawsuits were about companies that offered unregistered securities to their customers.
The SEC is now expected to review these changes and even put some of the enforcement actions on ice. Its goal is to help the US become the top cryptocurrency market in line with Donald Trump’s campaign pledges.
Coinbase will also benefit from the potential crypto ETF approvals. Analysts predict that coins like XRP and Solana will have their ETFs approved this year, a move that JPMorgan analysts estimate would lead to over $14 billion in inflows.
Coinbase has become the biggest crypto custodian in the industry, holding assets for companies like Grayscale and Blackrock. It will be the custodian for the upcoming crypto exchange-traded funds.
Base Layer 2 as a catalyst
Further, the company is benefiting from its investments in Base Blockchain, a popular layer-2 scaling solution in the crypto industry. The blockchain has become the biggest layer-2 network in terms of developers and transactions.
Base Blockchain now has 430 DeFi applications with a total value locked of $3.7 billion. Its bridged assets have jumped to over $15.97 billion, making it much bigger than popular layer-2 networks like Arbitrum and Polygon.
Base has also become the third-biggest player in the DEX trading industry, as it handled over $5.3 billion in volume in the last 7 days. The biggest dApps in the network are Aerodrome Finance, Uniswap, PancakeSwap, and Sushi.
Coinbase has also announced that it would start offering Bitcoin-backed loans through Morpho, a top lending protocol in the industry.
All this has made Base Blockchain a highly valuable brand. For example, Arbitrum, Polygon, and Optimism have a market cap of $3.37 billion, $4 billion, and $2.5 billion, respectively. That implies that Base is a multi-billion brand if Coinbase launches its airdrop.
Meanwhile, Coinbase is one of the biggest holders of Bitcoin. According to BitcoinTreasuries, the company owns 9,480 coins valued at over $993 million. These coins will likely become more valuable as they continue to rise. Bitcoin price has jumped to $105,000, and there are signs that the coin will continue soaring.
Analysts are optimistic that Coinbase, the biggest crypto exchange in the United States, will continue to perform well. The company’s revenue is estimated to be $5.8 billion in 2024 and $6.15 billion in 2025. Thus, the company will likely perform better than estimates as it has always done.
Coinbase stock price analysis
The daily chart shows that the COIN share price has surged in the past few years, moving from $31.80 in 2023 to $295 today. It recently moved above $283, the highest swing in March last year.
Coinbase remains above all moving averages and the top of the trading range of the Murrey Math Lines indicator. Therefore, the stock will likely bounce back as bulls target last year’s high of $350, followed by the extreme overshoot at $440.
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