Coinbase Emerges as Leading Ethereum-Focused Company, Reports Bernstein
Coinbase (COIN) is highlighted as a leading public company in the Ethereum ecosystem, according to a research report by Bernstein. Key points include:
- The native token ether (ETH) has increased by 80% since June 5, driven by Circle’s listing and recognition of stablecoins on Ethereum.
- Coinbase operates Base, a major Layer 2 chain on Ethereum, processing over 9 million transactions daily.
- Transaction fees on Base are settled in ether, contributing to an annualized revenue run rate of $75 million for Coinbase.
- Base is the dominant chain for token deployments, with increased trading activity due to Coinbase integrating Base tokens into its main exchange.
- The launch of the Base App enhances Coinbase's engagement with the Ethereum ecosystem.
- Coinbase holds approximately $590 million in ether (136,782 ETH), benefiting from price increases.
- In July, trading fees rose about 40% compared to Q2 averages, reflecting heightened ether trading activity.
- Bernstein maintains an outperform rating on Coinbase stock with a price target of $510; shares traded around $323 at publication.