JPMorgan Upgrades Coinbase, Projects $34B Opportunity from Base Token
JPMorgan (JPM) has upgraded Coinbase (COIN) from “neutral” to “overweight”, raising its price target from $342 to $404, citing new monetization opportunities and reduced risks that make the crypto exchange more compelling than its peers.
Shares of Coinbase rose about 4% to $332 in early trading following the announcement.
JPMorgan pointed to two key catalysts: the potential launch of a Base token and improved USDC yield offerings.
Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, which has rapidly become one of the ecosystem’s largest. JPMorgan estimates the token could achieve a $12–$34 billion market cap, with up to $12 billion accruing to Coinbase. The bank said the token could foster development, boost community engagement, and support long-term infrastructure growth.
In addition, Coinbase is monetizing USDC through its Coinbase One subscription service. Offering 4% returns to select users could add approximately $1 per share in annual earnings, according to JPMorgan.
While decentralized exchanges (DEXs) remain competitors, JPMorgan noted that the market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model—spanning brokerage, market making, exchange, and custody—helps maintain profitability even amid potential fee compression.
JPMorgan values Coinbase at 50 times projected 2027 earnings, including $4 billion from a potential Base token, and set a December 2026 price target of $404.
