Crypto News: JPMorgan Sees $34B Upside for Coinbase via Base Token Launch

JPMorgan projects that the potential Base token could be worth up to $34 billion, significantly raising Coinbase’s value.

JPMorgan’s latest report outlines a major upside for Coinbase. The bank’s calculation for the potential value of the Base token the company plans to issue is up to $34 billion. This presents a strong new path of monetization for the exchange. The new path is in addition to current revenue streams. These include USDC yields and on-chain trading in general.

Base Token Could ‘Equitize Success’ of Layer 2 Ecosystem

The report was published on Friday by JPMorgan’s equity research group. Consequently, it raised Coinbase’s rating significantly. The December 2026 share price target was increased to $404 overall. The firm cited the emerging monetization opportunities. It further mentioned abating risks for the company now. Coinbase is going further into its Layer 2 ecosystem effectively. This focus encompasses the stablecoin economics in general.

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JPMorgan believes that a Base token could “equitize the success” of the network. Base is Coinbase’s Layer 2 network that is based on Ethereum. The network was successfully launched in August 2023. Since then, it has risen to more than $5 billion in total value locked. It is also supporting more than 9 million transactions daily now.

Based on activity and “lofty token economics,” JPMorgan makes its estimate for the market cap. The cap of the token may one day soar to between $12 billion and $34 billion. Coinbase would probably retain a percentage of this supply in the aggregate. Analysts project that its equity share will be worth $4 billion to $12 billion now.

Currently, Coinbase is making revenue from the Circle-USD reserve interest in the amount of $400 million a year. However, JPMorgan pointed to the yield program in the US dollar. This program is another possible boost to earnings. The firm could become more profitable by limiting the 4% USDC yield. This yield could only be limited to Coinbase One subscribers at this time. Analysts say this strategic shift could bring $374 million additional dollars per year.

Strategic Acquisitions & Regulatory Clarity Strengthen Stock Outlook

In another development, Coinbase made a major acquisition. The firm acquired the digital asset investment platform Echo for $375 million. This buy harks back to the ICO boom, which was a successful one. That period witnessed projects that have raised billions by selling tokens. Therefore, this implies renewed interest in token launches now.

Furthermore, a token would help to grow the Base blockchain faster. This would be through the increase of community participation as a whole. It would also provide an incentive to the developers in an effective manner. Although Coinbase has been exploring the idea, there is no date set for the launch. However, the potential value has been well mapped out now.

The report also said that there has been an improvement in on-chain trading now. Coinbase has incorporated a decentralized exchange (DEX) aggregator. This aggregator is built on its Base app successfully. This integration aids the firm in hedging against intense competition from DEXs. DEXs now take a substantial amount of crypto trading volume.

The upgrade arrives amid generally good market sentiment on the whole. Factors such as the cooling inflation are fuelling this sentiment. Increased institutional participation is also playing an important role now. Among the major things in the quarter, Coinbase shared some important legislation. This included the passing of the GENIUS Act successfully. This Act sets up an important stablecoin regulatory framework.

Moreover, the House passed a general market structure bill. This bill is regarded as a move towards increased regulatory clarity now. As a result of these tailwinds, when combined with the Base token potential, it is what makes the upgrade worthwhile. Ultimately, JPMorgan sees good growth for Coinbase now.

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