Crypto asset manager Bitwise forecasts that Coinbase, a leading U.S.-based cryptocurrency exchange, will outpace Charles Schwab as the world’s most valuable brokerage by 2025. This prediction highlights Coinbase’s growing influence in the financial sector, especially in the realm of cryptocurrency trading and investment.
Key Data and Revenue Growth
Bitwise experts cite Charles Schwab, which manages $7 trillion in assets, as an example of how Coinbase might surpass it in brokerage services. Coinbase serves as the parent company for U.S.-based ETFs, and even the U.S. Department of Justice utilizes Coinbase Prime for custodial services. Given the billions in ETF inflows, this forecast appears plausible in the context of increasing demand. Additionally, an abnormal rise in share price is anticipated.
“As we entered 2023, investors could buy Coinbase shares for $35. Today, they are trading at $344, nearly a tenfold increase. We believe it can go even higher. Our prediction: Coinbase shares will surpass $700 by 2025.” – Bitwise
Bitwise identifies three major growth factors for Coinbase: crypto asset activities based on the USDC stablecoin, the Ethereum 
$2,358-based scaling solution Base, and staking and custody services. According to Bitwise data, Coinbase’s stablecoin operations have increased by $162 million (+31%) since the start of the year, while blockchain transactions yield “tens of millions” of dollars quarterly.
Current Status and Expectations
Coinbase’s projected growth is supported by developments in the cryptocurrency market. The proliferation of USDC and innovations within the Ethereum ecosystem could enhance Coinbase’s market share. Furthermore, the increase in staking and custody services is improving the company’s revenue quality. Coinbase stands out for investors due to its potential for future growth.
