As cryptocurrency prices rebound from their summer lows, companies that profit off trading volatility stand to benefit. Coinbase Global, Inc. (COIN) has continued to stay at the helm of the crypto financial services industry by diversifying its products offered, frequently adding new currencies, and complying with regulatory authorities. (See Coinbase stock charts on TipRanks)  

Calling it the “leading provider of financial services, infrastructure, technology, and custodial services for the high-growth, crypto asset universe,” John Todaro of Needham & Co. published his bullish hypothesis.  

The analyst rated the stock a Buy, and assigned a price target of $420.  

Todaro is confident the rapid expansion of the exchange business will occur, with Coinbase poised to capture a significant portion of it. He writes that COIN has been making a name for itself with both household and institutional users, and is increasing its market share.  

Currently, Coinbase’s roadmap includes it releasing several yield-bearing products, and Todaro expects the company to continue offering new assets for staking. This practice is described on Coinbase’s website as “a way of earning rewards for holding certain cryptocurrencies.” Quarter-over-quarter by its Q2 earnings release, staking revenues had increased 271%. 

Furthermore, the relatively high fees COIN charges per transaction have not appeared to scare away its user base. Todaro cites a survey that states that users place more priority on the quality of the platform, as well as the ability to trade a variety and availability of cryptocurrencies. He believes that investors' worries over fees are “misplaced.”  

The “one-stop shop for crypto financial services” has been encouragingly secure with its liquidity and platform security, and thus far, has held off high-profile hackers.  

On TipRanks, COIN has an analyst rating consensus of Moderate Buy, based on 11 Buy and 3 Hold ratings, and 1 Sell rating. The average Coinbase price target is $355.54.  

Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.

​Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post Coinbase Positioning Itself for More Market Share appeared first on TipRanks Financial Blog.

----------------------------

By: Brock Ladenheim
Title: Coinbase Positioning Itself for More Market Share
Sourced From: blog.tipranks.com/coinbase-positioning-itself-for-more-market-share/
Published Date: Wed, 25 Aug 2021 08:03:18 +0000

Read More