Wall Street bank JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral” and raised its price target to $404, citing new monetization opportunities and reduced risks that make the crypto exchange look more attractive compared to its peers.
Shares were up about 4% in early trading, around $332.
The bank highlighted two key catalysts: a potential Base token and improved payments in USDC.
JPMorgan analysts said Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, which has become one of the largest in the ecosystem.
A token could allow Coinbase to capture more of Base’s growth, with the bank estimating a potential market capitalization of between $12 billion and $34 billion and up to $12 billion in accumulated value for Coinbase. The move, JPMorgan said, could spur development, community engagement and long-term infrastructure growth.
Analysts at the bank also highlighted Coinbase’s efforts to better monetize USDC by offering yields to customers through its Coinbase One subscription service. By segmenting users and offering a 4% yield to subscribers, Coinbase could add about $1 per share in annual earnings, JPMorgan said.
While competition from decentralized exchanges (DEXs) remains a risk, analysts said market share between DEXs and centralized exchanges has stabilized. He added that Coinbase’s integrated model, which encompasses brokerage, market making, exchange and custody, should help maintain profitability even if fees decline.
JPMorgan valued Coinbase at 50 times projected 2027 earnings, factoring in $4 billion of potential Base token, and set a December 2026 price target of $404.
Read more: Coinbase Opens Amex Card with Up to 4% BTC Cash Back for Coinbase One Members in the US
