The growth in cryptocurrency has helped to boost the price of Coinbase over the last two years. In 2023, COIN reached a low of $31.80 as the FTX Crisis unfolded. The stock has risen from $31.80 to $300 in 2023, an 842% increase. It now has a market capitalization of $72 billion. It is possible that the company will continue to do well in this year, as there are significant tailwinds.
Stock of Coinbase faces tailwinds
COIN’s share price will continue to rise, thanks to key tailwinds within the crypto sector. Most notable will be the changes that will occur at the Securities and Exchange Commission, where Paul Atkins is set to replace Gary Gensler.
Atkins, who is seen to be a crypto-friendly leader, has a better reputation than Gensler. Gensler ruled with enforcement, suing numerous companies including Coinbase. The majority of lawsuits involved companies who offered their customers unregistered security.
SEC will now review the changes, and may even suspend some enforcement actions. The SEC’s aim is to make the US the world leader in cryptocurrency, as per Donald Trump’s election promises.
Coinbase is also set to benefit from potential ETF approvals. Analysts believe that the ETFs for coins such as XRP, Solana and others will be approved by JPMorgan this year. This move is expected to result in over $14 billion of inflows.
Coinbase is now the largest crypto-custodian, holding assets from companies such as Grayscale and Blackrock. The custodian of the new crypto exchange traded funds will be Coinbase.
Base Layer 2 is a catalyst
The company also benefits from the investments it has made in Base Blockchain ,a layer-2 scaling solution popular in the crypto-industry. In terms of transactions and developers, the blockchain is now the largest layer-2 network.
Base Blockchain has now 430 DeFi apps with a locked-in value of $3.7billion. The bridged assets of Base Blockchain have increased to $15.97 Billion, which is much larger than layer-2 networks such as Arbitrum or Polygon.
Base is also the third largest player in DEX, having handled more than $5.3 billion worth of volume over the past 7 days. Aerodrome Finance is the largest dApp in the network, followed by Uniswap PancakeSwap and Sushi.
Coinbase announced it will also begin offering Bitcoin-backed loan through Morpho. Morpho is a leading lending protocol within the industry.
Base Blockchain has become a valuable brand as a result of all this. Arbitrum, Polygon and Optimism, for example, have a combined market capitalization of $4 billion and $3.37 billion. If Coinbase’s airdrop is successful, Base will be a brand worth billions of dollars.
Coinbase, meanwhile, is among the largest Bitcoin holders. BitcoinTreasuries reports that the company has 9,480 coins worth over $993 millions. As the value of these coins continues to increase, they will become even more valuable. Bitcoin’s price is now at $105,000 and it appears that this coin will keep on rising.
Analysts believe that Coinbase will perform very well in the future. Estimated revenues for the company are $5,8 billion by 2024 and $ 6,15 billion by 2025. The company is likely to perform better than expected as they have always.
Stock price analysis by Coinbase
COIN’s share price has risen dramatically in recent years. It went from $295 in 2013 to $31,80 in 2016. Recently, it moved over $283. The highest move was in March of last year.
Coinbase is still above the moving averages, and at the top of its trading range for the Murrey Math Lines. Bulls will therefore likely target the $350 high from last year, then the $440 extreme overshoot.
The price of Coinbase is set to rise in 2025. Is it worth buying? This post may change as new information becomes available
