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Coinbase More Than Just Trading Platform, It's 'Mission-Critical' for Crypto, Cantor Says
The broker initiated coverage of the crypto exchange with an overweight rating and a $245 price target.
What to know:
- Cantor initiated coverage of crypto exchange Coinbase with an overweight rating and a $245 price target.
- Investors are not assigning enough value to the company's activities outside of crypto trading, the report said.
- Coinbase's layer 2 blockchain Base gives the firm an edge, Cantor said.
Coinbase (COIN) is more than just a crypto trading platform, Wall Street broker Cantor said in a research report Tuesday, initiating coverage of the stock.
Cantor assumed coverage of the crypto exchange with an overweight rating and a $245 price target. In early trading, the shares were up more than 5%.
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"Markets are missing what it is doing beyond trading, particularly with its L2 (Base) and its stablecoin relationship with Circle," analysts Brett Knoblauch and Thomas Shinske wrote. Coinbase shares are attractive at current levels, as they are trading at around a 32% discount to historical valuation multiples, the report added.
The broker sees both these segments as "instrumental in changing the narrative surrounding COIN, from being a cyclical crypto trading platform to being a mission-critical infrastructure of the crypto economy."
The report said the shares are expected to re-rate higher once investors have increased visibility into the earnings potential of Base and stablecoins.
Base gives Coinbase an edge, the report said. The layer 2's strong user growth creates a "flywheel effect" that benefits the crypto exchange with more transaction fees.
Cantor said the stablecoin opportunity is also being underappreciated by the market, especially given the potential for these cryptocurrencies to displace traditional finance cross-border payment rails.
Read more: Cathie Wood’s ARK Buys Over $13M Worth Coinbase Shares During Market Rout
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
알아야 할 것:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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알아야 할 것:
- Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.
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