Coinbase shares rose 9.82% to $354.46 on Monday after JPMorgan Chase upgraded the cryptocurrency exchange, citing new growth opportunities and potential revenue streams.
Analysts highlighted Coinbase’s upcoming Base layer-2 blockchain token launch as a major driver. JPMorgan estimates the Base ecosystem could create a $12–$34 billion market, with Coinbase potentially capturing $4–$12 billion of that value. The token is expected to be distributed to developers, validators, and community members to support ecosystem growth.
The bank also pointed to changes in Coinbase’s USDC rewards program, which would focus interest rewards primarily on Coinbase One subscribers. JPMorgan projected this adjustment could add $374 million in annual earnings, boosting the company’s profit margins.
Investors are also looking ahead to Coinbase’s Q3 earnings report, scheduled for 30 October. Analysts at Zacks Investment Research forecast earnings of $1.06 per share, a 71% year-on-year increase, and revenue of $1.74 billion, up 44.1% from the same period last year. Growth is expected to be driven by the company’s subscription and services segment, projected to generate $665 million to $745 million this quarter.
Strategically, Coinbase recently acquired digital asset investment platform Echo for $375 million, signaling an effort to expand into crypto fundraising and revive regulated token sales. Partnerships, such as the one with Google, further reinforce Coinbase’s goal of integrating crypto into mainstream financial services.
The upgrade and positive outlook come after a mixed Q2 performance, when the company missed earnings expectations but achieved operational milestones, including growth in stablecoin balances and related revenue.
