Coinbase (COIN) shares have experienced a 16% decline over the past five days, mirroring broader volatility in the crypto and stock markets, yet an analyst suggests that investors are missing a potential buying opportunity. Crypto analyst Will Clemente recently explained in an Unchained Crypto podcast that the current process in the crypto market is not sufficiently priced in.
Prominent Analyst Warns About Coinbase
On the show, Clemente stated that Coinbase is the biggest venture product in public markets since Tesla about five years ago. Despite many changes in its business structure over the last 12 months, traditional investors still see Coinbase primarily as an exchange, Clemente claimed, sharing the following:
“Throughout the bear market, they made many strategic moves towards what I call my super crypto app.”
Specifically, he noted that Coinbase’s Ethereum Layer-2 network Base currently has a locked total value (TVL) of $5.35 billion and manages 30.81 transactions per second:
“In the last 30 days, Base alone generated $30 million in revenue for Coinbase based solely on sequencer fees, which translates to about $360 million annually. Investors don’t even know what Base is, and they absolutely cannot guess the potential of many activities happening there and the sequencer fees Coinbase could capitalize on.”
What’s Happening with COIN?
Google Finance data shows that at the time of writing, COIN shares are trading at $218.08, nearly a 16% drop over the last five days. Coinbase is expected to release its earnings report for the first quarter of 2024 in the coming weeks.
In the past five days, the S&P 500 index fell by 3.12% while Bitcoin dropped about 4.67%. Meanwhile, geopolitical tensions in the Middle East are expected to drive further downward movements in both markets. This news comes during a period when Cathie Wood’s ARK Invest continues its selling spree of COIN shares.
On April 15th, it was reported that ARK sold approximately 3,689 COIN shares valued at about $824,000. Just a month earlier, ARK had sold a surprising amount of stock during a period when its price had risen about 54% since the start of the year.
