Coinbase Stock Pumps to a 3-Year High – New All-Time High Incoming?
The shares of leading crypto exchange Coinbase have traded above the $320 mark in the last few days for the first time in three years. The rally follows the Bitcoin boom triggered by the Donald Trump’s victory.
Besides Coinbase’s COIN, the stock of the largest institutional Bitcoin holder, MicroStrategy (MSTR), has also seen significant gains, setting an all-time high of $351 on Saturday.
COIN peaked at $334.32 over the weekend, just a couple of dollars away from its all-time high of $357 recorded in August 2021. The latest milestone has raised a key question among investors in Coinbase: Will COIN cross $357 to set a new peak price?
Analysts Share Varying Views on COIN’s Future Performance
Several analysts believe that COIN could enter new territory as the crypto industry in the United States prepares for a friendlier regulatory environment under the administration of pro-Bitcoin President Donald Trump. However, there are analysts who anticipate COIN trading below its all-time high for at least a year.
According to data from TipRanks, nine analysts expect COIN to shoot to $400 within the next twelve months. They have advised the public to buy the stock. Additionally, eight experts recommend current COIN investors continue holding their positions, while one advises selling the asset.
Which Factors Are Likely to Spur COIN’s Rally?
COIN is up 52% in the past 30 days and has rallied 14% in the last five days, per NASDAQ data. Its ability to rally toward the peak price in the coming months depends on several factors, according to Patrick Moley, an analyst at Piper Sandler.
Among the drivers is whether Trump will keep his crypto promises, including firing the Securities and Exchange Commission Chair Gary Gensler if he does not resign first. Also, Trump vowed to introduce policies that promote Bitcoin mining in the United States upon re-election.
Another factor expected to determine COIN’s price performance in 2025 and beyond is Coinbase’s ability to retain its competitive edge in the US amid stiff competition from other top exchanges aiming to claim an American market share.
Moley says the bullish statements from the President-elect could encourage Coinbase to fully commit to its US operations, thus maintaining its position as the leading crypto exchange by trading volume in America.
Coinbase Witnesses a Spike in Trading Volume Following Trump’s Victory
The exchange, led by Brian Armstrong, has seen its trading volume surge since Donald Trump’s re-election. According to CoinGecko’s data, Coinbase has processed over $11 billion worth of trades in the past two weeks. That figure represents a 401% increase. Numerous analysts say the surge signals the entry of retail investors into the crypto markets.
With increased trading activity on its exchange, Coinbase is likely to generate significant revenue by collecting fees. Senior analyst at Oppenheimer & Co., Owen Lau, says a spike in revenue could boost COIN’s price as it indicates that the crypto trading platform is doing well.
However, Lau claims Coinbase’s positive performance in the United States could attract foreign crypto platforms, thus reducing its market dominance, which stands at 46%, according to Kaiko data. He argues that when retail traders move to other platforms, it could affect COIN’s price performance.
Coinbase Competitors
Several companies are already a threat to Coinbase’s dominance in the US. For example, popular stock exchange Robinhood is embracing cryptocurrencies, supporting over ten digital assets as of November 2024. Furthermore, the TradFi company has acquired the Bitstamp crypto exchange to expand its digital services. According to data on Robinhood’s website, users can now stake ETH and SOL to earn yield.
As Trump’s administration introduces clear regulations, Moley expects more firms to enter the American crypto market in an attempt to challenge Coinbase. However, he’s optimistic that the Armstrong-led exchange will still be a top choice among American retail traders due to its extensive offerings.
As a result, COIN will continue to be an appealing investment among traditional investors who do not wish to have direct exposure to crypto.
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