• Wed. Apr 17th, 2024

Coinbase’s (COIN) Future Brightens with Broker’s Positive Outlook on Blockchain Adoption

BySamantha Jones

Apr 4, 2024
Oppenheimer Predicts Coinbase Will Gain from Increasing Adoption of Blockchain Technology

Coinbase (COIN) is expected to benefit from the long-term adoption of blockchain technology, according to broker Oppenheimer. The research report released by the broker on Wednesday raised its earnings estimates for the crypto exchange. It predicts that Coinbase’s trading volume in the first quarter of 2024 could see a significant increase of 95% quarter-on-quarter and 107% year-on-year, reaching $300 billion.

The report highlights that the adoption of digital assets has continued to grow following the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in January. It also notes that there is increasing liquidity in the space, particularly with regards to the growth of USDC, a stablecoin issued by Circle, which is backed by Coinbase. The exchange earns gross interest income on USDC outstanding balances.

In light of this positive outlook, Oppenheimer raised its price target for the stock to $276 from $200. As of now, Coinbase shares are trading 2.5% higher at $258. Despite these significant gains made by the stock in recent months, analysts warn of potential near-term volatility even as they remain optimistic about the long-term adoption of blockchain technology.

Looking ahead, investors should be aware of some potential headwinds for Coinbase. While it has shown strong momentum, risks remain especially with regards to the approval of a spot ether (ETH) ETF. Previously expected in May, Oppenheimer now sees a low probability of this approval happening due to regulatory concerns.

By Samantha Jones

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