Goldman Sachs upgrades Coinbase rating amid crypto surge and market dominance boost Goldman Sachs upgrades Coinbase rating amid crypto surge and market dominance boost
Coinbase navigates regulatory challenges as market share and stock price soar.
2 min read
Updated: Mar. 8, 2024 at 3:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase, the leading US-based crypto exchange, has seen a surge in its market share following the introduction of several spot Bitcoin exchange-traded funds (ETFs) in January.
In response, analysts at Goldman Sachs have upgraded their rating on Coinbase shares from selling to neutral and adjusted their price target to $282.
Coinbase shares
The bank analysts wrote:
“We are upgrading shares of COIN to Neutral from Sell, as crypto prices have surged to all time highs, and COIN daily volumes have reached levels not seen since 2021 driving a 48% increase to our revenue estimates since early February.”
The analysts explained that their decision reflects the changing landscape of the crypto market and the corresponding impact on Coinbase’s performance.
Previously, JPMorgan analysts had downgraded Coinbase’s stock from Neutral to Underweight due to pressures in the crypto market and potential revenue shifts away from Coinbase following the launch of the new ETFs.
Coinbase’s stock has grown substantially during the past month, trading at around $244 during pre-market trading today, marking a remarkable 105% increase over the past month, according to Yahoo Finance data.
Market share growth
Coinbase’s market dominance has surged from 47% to 60% in the last three months following the approval of Bitcoin ETFs in January, according to data from blockchain analytics firm Kaiko.
The platform’s remarkable growth stems from heightened user engagement, propelling its app to notable rankings. Currently, Coinbase is the 13th most popular US finance application, as tracked by a platform monitoring app growth, Sensor Tower.
However, Coinbase has grappled with technical challenges amid this ascent, resulting in users encountering zero balances in their accounts. Coinbase CEO Brian Armstrong attributed this glitch to the significant spike in traffic caused by the BTC’s ascent to new record highs.
Beyond technical setbacks, Coinbase is also navigating a landscape fraught with regulatory hurdles, particularly with the US Securities and Exchange Commission over the past year.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Goldman Sachs
Goldman Sachs a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
JPMorgan
JPMorgan Chase & Co is a global leader in financial services, offering solutions to the world’s most important corporations, governments, and institutions in more than 100 countries.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.