Benchmark Says Coinbase to ‘Benefit’ from Stablecoin Boom, Initiates at ‘Buy’
Benchmark rated Coinbase a buy with a price target of $252, citing favorable legislation for the crypto industry. Coinbase shares were trading at $198, down 20% year-to-date. Analysts believe stablecoin legislation could significantly boost Coinbase's valuation and market activity. If enacted within 90 days, increased income from USDC assets is anticipated as its market cap rises. Coinbase reported $910 million in stablecoin revenue for 2024, a 31% increase from the previous year, viewing stablecoins as a revenue diversification strategy. Cantor Fitzgerald also rated Coinbase overweight with a $245 target, emphasizing its role in stablecoin adoption. Estimates suggest the stablecoin market could reach $2 trillion by 2035, potentially increasing Coinbase's stablecoin revenue by 12 times. CEO Brian Armstrong aims to surpass Tether's USDT market cap of $145 billion and is focusing on partnerships and payment support for USDC.
