Rebecca Cruz Coinbase stock surges after JPMorgan upgrade, driven by optimism over Base network growth and new USDC revenue models that could unlock billions in value.
Coinbase stock surged on Friday after JPMorgan raised its outlook on the crypto exchange, signaling confidence in the company’s expanding Base network and evolving USDC monetization strategy. The renewed optimism around Coinbase comes as Wall Street begins to recognize its potential as both an exchange and a blockchain infrastructure powerhouse.
JPMorgan upgrade fuels Coinbase momentum
The financial giant upgraded Coinbase from Neutral to Overweight, lifting its price target to 404 dollars per share implying a 15 percent upside. JPMorgan’s bullish call highlighted two key growth engines: Coinbase’s Base layer two blockchain and the revamp of its USDC rewards program.
Base, which launched in 2023, has quickly become a cornerstone of Coinbase’s broader ecosystem. Analysts noted that Coinbase is strategically positioning itself to capture long-term value from Base’s growth by exploring monetization models beyond transaction fees. According to JPMorgan’s estimates, the introduction of a Base token could open a 12 billion to 34 billion dollar market opportunity, with Coinbase potentially retaining between 4 billion and 12 billion dollars worth of that value.
The prospect of a Base token launch has already stirred excitement within the developer community. JPMorgan suggested that any token distribution would likely prioritize validators, developers, and community participants, reinforcing Coinbase’s aim to decentralize ownership while maintaining a strong operational footprint.
USDC program overhaul promises higher profitability
Another catalyst behind the upgrade is Coinbase’s evolving USDC rewards strategy. JPMorgan’s analysis indicated that Coinbase could significantly boost profitability by restructuring its interest payouts. Currently, users earn yields on their USDC holdings, but the company may shift that benefit exclusively to its Coinbase One subscribers a move designed to enhance recurring revenue.
By trimming rewards for standard users, Coinbase could unlock an additional 374 million dollars in annual earnings at current market rates. This adjustment aligns with its ongoing strategy to strengthen its subscription and services segment, which already accounts for a growing share of the company’s revenue mix.
The report underlined that as interest rates stabilize and stablecoin adoption accelerates, Coinbase’s ability to fine-tune its USDC yield model will play a vital role in sustaining profit margins.
Coinbase stock rallies as investors eye Q3 results
Following the JPMorgan upgrade, Coinbase stock jumped more than nine percent, closing near 353 dollars. The rally pushed its market capitalization to around 90.6 billion dollars, marking a 42 percent increase since the start of the year.
Investors are now turning their attention to Coinbase’s upcoming third-quarter earnings report, scheduled for October 30. Analysts expect earnings of 1.06 dollars per share, up 71 percent from a year earlier, with revenue projected at 1.74 billion dollars a 44 percent year-over-year increase.
The anticipated results follow a mixed second quarter when Coinbase fell short of profit expectations but achieved operational wins, including record stablecoin balances and expanding service revenues. Its subscription and services business is expected to contribute between 665 million and 745 million dollars in Q3, reinforcing its shift toward a more diversified revenue model.
Base and regulation drive Coinbase’s next chapter
Beyond its financials, Coinbase continues to benefit from policy progress in Washington. The approval of the GENIUS Act, establishing a stablecoin framework, and the House’s passage of a broader crypto market structure bill have created momentum for regulatory clarity a factor JPMorgan believes could further enhance Coinbase’s competitive edge.
The growing adoption of Base has positioned Coinbase as not only an exchange but also a key infrastructure player. The network’s on-chain activity and ecosystem expansion have strengthened the company’s role in decentralized finance. Analysts argue that this transition, coupled with smart yield optimization around USDC, represents the next phase of Coinbase’s growth story.
As Coinbase deepens its focus on blockchain scalability, regulatory engagement, and stablecoin integration, its evolving business model is beginning to resemble a full-fledged fintech ecosystem rather than a traditional exchange. With Wall Street’s confidence rising and strategic bets on Base and USDC gaining traction, Coinbase appears poised to capitalize on the next major wave of crypto adoption.
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Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
