The company known by the abbreviation KBW, Keefe, Bruyette & Woods, released a striking report today regarding Coinbase. According to the report, Coinbase is making a unique contribution to the long-term growth of crypto. KBW also provides a different target for the COIN stock. Accordingly, the company has updated its previously stated target. Let’s look at the details.
45 Percent Target for COIN Shares
KBW has raised the price target for COIN stock from $160 to $230 and maintained its market performance note. The report stated that Coinbase’s trading activity continues to increase, with an average daily volume of $5.1 billion for March.
The cryptocurrency exchange’s shares closed at $245.84 on Tuesday and have shown an increase of over 40% to date.
Led by analyst Kyle Voigt, the team wrote, “We see a significant near-term revenue opportunity from unpaid USD Coin (USDC) balances, high levels of crypto assets, and a notable individual re-engagement from the 2023 lows.”
The report highlighted that unpaid USDC balances continued to grow, increasing by 32% in the first quarter. USDC is a stablecoin issued by Circle, which is also backed by Coinbase. KBW stated that the crypto exchange earns gross interest income from approximately 56% of USDC’s unpaid balances.
Increasing Transaction Volumes
The report also noted that increasing transaction volumes have contributed to the stock, with the average daily volume (ADV) for March being $5.1 billion, compared to $2.4 billion in February.
The authors of the report wrote that Coinbase’s legal battle with the U.S. Securities and Exchange Commission (SEC) and the uncertain regulatory environment have made it very difficult for many institutional investors to own the stock. This situation, of course, raises doubts for investors and appears as a risk factor. However, if this risk is eliminated, then it can be said that the shares of the cryptocurrency exchange Coinbase could increase even more.
Coinbase, a well-known exchange in the cryptocurrency field, is especially known for its sensitive token listings. In recent days, the crypto exchange listed the cryptocurrency ARKM. The tokens listed on the exchange are becoming stronger in the crypto field.
