Coinbase’s recent stock selloff may not be as bad as it looks. Analysts at William Blair say the company’s 26 percent drop from its first-quarter peak has now “de-risked” the stock.
The bank said weaker trading activity in early 2026 now appears to be priced in. That means investors may already have taken the short-term pain into account.
William Blair still sees Coinbase as one of the strongest ways to bet on the growth of crypto. It said the company is becoming more than just a crypto exchange, with new products like derivatives, staking, prediction markets and services built around its Base network.
A big reason for that view is USDC. The bank said the stablecoin has grown its share of the dollar stablecoin market to about 27 percent, up from around 21 percent in 2024.
That growth matters because USDC is becoming a major revenue driver for Coinbase. Analysts estimate Coinbase made about $1.35 billion from USDC-related revenue in 2025, which was roughly 19 percent of its total income.
Coinbase also benefits through its close ties to Circle, the company behind USDC. The two firms share reserve income, and that gives Coinbase a stronger and more stable business as USDC expands into payments, business transfers and card networks.
William Blair said this could make Coinbase less dependent on trading fees, which often rise and fall with the market. If USDC keeps growing, the company could build a more steady and higher-margin source of income.
The bank said that gives Coinbase “asymmetric upside.” In simple terms, if crypto stays quiet, stablecoin revenue can still support the business. If the market picks up again, Coinbase could get an even bigger boost.
