Coinbase ( COIN ), the largest cryptocurrency exchange in the US, has seen a significant decline in its stock valuation, falling nearly 40% from a peak of $444 in July to a current trading level of around $271 per share. This, amid market fluctuations and increased volatility in the broader crypto market, is affecting the stock market’s performance.
Bernstein predicts a new phase of growth for Coinbase
Despite these challenges, Bernstein analysts are holding on optimistic perspective on Coinbase’s share price, suggesting a potential new bullish phase that could propel COIN to surpass previous all-time highs and reach levels above $500.
Bernstein maintains a $510 price target on Coinbase, highlighting the exchange’s shift from a trading-focused platform to what analysts call an emerging “everything exchange.”
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Analysts led by Gautam Chhugani highlighted delicate market conditions, stating that cryptocurrency price fluctuations are affecting quotes crypto-exposed stocks.
However, Bernstein distinguishes the current market environment from past crypto crashes, noting that the speculative glut primarily affects what they call “MSTR imitators,” referring to the performance of Strategy (formerly MicroStrategy) stock.
Central to Bernstein’s bullish thesis is Coinbase’s strategic diversification away from volatile spot trading revenue. They claim that exchange is developing into a comprehensive financial platform.
Analysts stress that clearer regulatory guidance in the US could spur a revaluation of these business lines, bridging the gap with offshore rivals that benefit from faster token listings and fundraising fees.
Coinbase’s foray into issuing tokens through a launchpad-style model, for example Monad’s (MON) recent listing, shows growing market interest. Bernstein notes that these launches, which directly affect trading activity, can stimulate the cycle of issuance, listing and increased trading volume.
Reliable ratings for COIN
Looking ahead, one of the most significant exchanges catalysts is an upcoming product presentation on December 17, which is expected to reveal the development of tokenized stocks, prediction markets and other tools that expand the exchange’s offerings beyond spot crypto trading.
The integration with Deribit is also expected to further strengthen Coinbase’s derivatives expansion, positioning the exchange closer to platforms such as Robinhood as both entities diversify their product offerings.
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On the consumer side, the Base exchange’s app, focused on wallet services, payments and social features, acts as a centralized access point for the broader token markets, reaffirming analysts bullish predictions.
Bernstein’s reaffirmed “Buy” rating on Coinbase with a hefty price target of $510 underscores the firm’s confidence in COIN’s growth trajectory. Monness Crespi’s recent upgrade from “Neutral” to “Buy” with a $375 target further adds to the bullish sentiment around the stock’s valuation amid falling prices.
Featured image from DALL-E, chart from TradingView.com
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