JPMorgan (JPM) Upgrading Coinbase (coin), sees potential $34 billion base token opportunity
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 more attractive compared to its peers.
Shares were about 4% higher in early trading, around $332.
The bank highlighted two main catalysts: a potential base token and improved USDC payout.
JPMorgan analysts say Coinbase is exploring a token for its base, layer 2 blockchain Launched in August 2023which has grown into one of the largest in the ecosystem.
A token allows Coinbase to capture more of Base’s growth, with the bank estimating a possible $12 billion to $34 billion market cap and up to $12 billion in value accumulated in Coinbase. The move, JPMorgan said, could spur development, community involvement and long-term infrastructure growth.
Bank analysts also noted Coinbase a subscription service. By segmenting users and offering a 4% return to subscribers, Coinbase could add about $1 per share to annual revenue, JPMorgan said.
While competition from decentralized exchange (DEX) remains a risk, analysts said that the market share between DEXs and Centralized exchanges is stabilized. It added that Coinbase’s integrated model, spanning brokerage, market making, exchange and custody, should help maintain profitability even as fees drop.
JPMorgan values Coinbase at 50 times expected 2027 earnings, confirming $4 billion from a potential token base, and has set a December 2026 price target of $404.
Read more: Coinbase opens AMEX card with up to 4% back in BTC for US Coinbase One Members
