Oppenheimer Predicts Coinbase Will Gain from Increasing Adoption of Blockchain Technology

Coinbase (COIN) is poised 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. The report speculates 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.

Analysts Owen Lau and Guru Sidaarth highlighted the growth of digital assets following the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in January. They also noted the increasing liquidity in the space, particularly with regards to 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, Coinbase shares were trading 2.5% higher at $258. While there has been significant gains made by the stock in recent months, analysts warned of potential near-term volatility even as they remain optimistic about

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