PANews reported on October 25th that, according to The Block, JPMorgan analysts stated that Coinbase's eventual launch of the Base network token could unlock up to $34 billion in value. The bank also highlighted Coinbase's USDC reward mechanism changes and the new DEX functionality integrated with Base as key profit and risk management levers. JPMorgan's equity research team upgraded Coinbase's rating and raised its December 2026 price target to $404 in a report released Friday, citing "emerging profit opportunities and diminishing risk" as the company furthers its integration into the Layer 2 ecosystem and stablecoin economy. JPMorgan stated that the Base token could "equitably leverage" the success of Coinbase's Ethereum-based Layer 2 network. Based on current network activity and "high token economics," the bank predicts Coinbase's market capitalization could reach $12 billion to $34 billion over time, with Coinbase potentially retaining 40% of the supply, equivalent to approximately $4 billion to $12 billion in equity value. JPMorgan also pointed to Coinbase's USDC yield program as a potential margin leverage opportunity. The company currently returns most of the interest it earns from Circle's USDC reserves (approximately $400 million annually) to customers as rewards. However, analysts say Coinbase is evaluating a change that would limit payouts to Coinbase One subscribers. If regular users stop earning yield, Coinbase could retain approximately $374 million annually and distribute it to customers. Finally, the analysts noted that Coinbase integrated a DEX aggregator into the Base app as a hedge against the growth of decentralized exchanges, which currently account for approximately 25% of all cryptocurrency spot trading.PANews reported on October 25th that, according to The Block, JPMorgan analysts stated that Coinbase's eventual launch of the Base network token could unlock up to $34 billion in value. The bank also highlighted Coinbase's USDC reward mechanism changes and the new DEX functionality integrated with Base as key profit and risk management levers. JPMorgan's equity research team upgraded Coinbase's rating and raised its December 2026 price target to $404 in a report released Friday, citing "emerging profit opportunities and diminishing risk" as the company furthers its integration into the Layer 2 ecosystem and stablecoin economy. JPMorgan stated that the Base token could "equitably leverage" the success of Coinbase's Ethereum-based Layer 2 network. Based on current network activity and "high token economics," the bank predicts Coinbase's market capitalization could reach $12 billion to $34 billion over time, with Coinbase potentially retaining 40% of the supply, equivalent to approximately $4 billion to $12 billion in equity value. JPMorgan also pointed to Coinbase's USDC yield program as a potential margin leverage opportunity. The company currently returns most of the interest it earns from Circle's USDC reserves (approximately $400 million annually) to customers as rewards. However, analysts say Coinbase is evaluating a change that would limit payouts to Coinbase One subscribers. If regular users stop earning yield, Coinbase could retain approximately $374 million annually and distribute it to customers. Finally, the analysts noted that Coinbase integrated a DEX aggregator into the Base app as a hedge against the growth of decentralized exchanges, which currently account for approximately 25% of all cryptocurrency spot trading.

JPMorgan Chase: Coinbase could unlock $34 billion in value if it launches Base token

By: PANews

2025/10/25 08:18

JPMorgan's equity research team upgraded Coinbase's rating and raised its December 2026 price target to $404 in a report released Friday, citing "emerging profit opportunities and diminishing risk" as the company furthers its integration into the Layer 2 ecosystem and stablecoin economy. JPMorgan stated that the Base token could "equitably leverage" the success of Coinbase's Ethereum-based Layer 2 network. Based on current network activity and "high token economics," the bank predicts Coinbase's market capitalization could reach $12 billion to $34 billion over time, with Coinbase potentially retaining 40% of the supply, equivalent to approximately $4 billion to $12 billion in equity value.

JPMorgan also pointed to Coinbase's USDC yield program as a potential margin leverage opportunity. The company currently returns most of the interest it earns from Circle's USDC reserves (approximately $400 million annually) to customers as rewards. However, analysts say Coinbase is evaluating a change that would limit payouts to Coinbase One subscribers. If regular users stop earning yield, Coinbase could retain approximately $374 million annually and distribute it to customers.

Finally, the analysts noted that Coinbase integrated a DEX aggregator into the Base app as a hedge against the growth of decentralized exchanges, which currently account for approximately 25% of all cryptocurrency spot trading.

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