• Sun. Apr 21st, 2024

Oppenheimer Upgrades Earnings Estimates for Coinbase Amid Growing Adoption of Blockchain Technology: Investor Insights

BySamantha Nguyen

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

Coinbase (COIN) is well-positioned to benefit from the long-term adoption of blockchain technology, according to broker Oppenheimer. A research report released by the broker on Wednesday raised its earnings estimates for the crypto exchange. The report 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 notes that the adoption of digital assets has continued to grow following the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in January. Analysts Owen Lau and Guru Sidaarth also highlighted the increasing liquidity in the space, particularly noting the growth of the average market cap of USD Coin (USDC) to $31 billion by the end of the first quarter of 2024. USDC is a stablecoin issued by Circle, which is backed by Coinbase, and the exchange earns gross interest income on USDC outstanding balances.

In light of this positive outlook for Coinbase, Oppenheimer raised its price target for the stock to $276 from $200. As of publication time, Coinbase shares were 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, there are some potential headwinds that investors should be aware of according to Oppenheimer’s report. While strong momentum has been seen in recent months with regards to spot bitcoin ETFs, risks remain especially with regards to spot ether (ETH) ETF approval which was previously expected in May but now seen as having a low probability due to regulatory uncertainty and market conditions concerns

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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