• In the past week, Bitcoin and Ethereum experienced sharp declines, with Bitcoin falling below US$110,000 and Ethereum dropping roughly 5%, leading to widespread crypto market sell-offs that extended into crypto-linked stocks like Coinbase Global.

• This downturn was driven by significant liquidations, ETF outflows, and reduced investor risk appetite, signaling how closely Coinbase’s stock performance tracks the broader trends within the digital asset ecosystem.

• We’ll review how the sharp contraction in crypto prices and trading volumes impacts Coinbase’s investment narrative, especially its reliance on transaction-based revenue.

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To own Coinbase Global stock, an investor needs to believe in the mainstream adoption of blockchain-based financial infrastructure, rising institutional participation, and Coinbase’s ability to expand beyond its dependence on transaction fees. The recent crypto market downturn, marked by sharp declines in Bitcoin and Ethereum, does not materially alter Coinbase’s most immediate catalyst, which remains a recovery in spot trading volumes, but it does sharpen the focus on the risk of revenue volatility tied to market swings.

Among recent announcements, the launch of the x402 Foundation with Cloudflare stands out. This initiative aims to create open standards for internet-based payments, aligning with Coinbase’s push into new, recurring revenue lines that could help balance out exposure to cyclical trading activity and bolster its diversification strategy.

In contrast, investors should be aware that even as Coinbase innovates and expands, trading revenues remain exposed to cycles of…

Read the full narrative on Coinbase Global (it’s free!)

Coinbase Global’s outlook anticipates $8.5 billion in revenue and $2.1 billion in earnings by 2028. This implies an annual revenue growth rate of 8.3% but a decrease in earnings of $0.8 billion from current earnings of $2.9 billion.

Uncover how Coinbase Global’s forecasts yield a $370.09 fair value, a 18% upside to its current price.

Fair value estimates from 32 Simply Wall St Community members span from US$138 to US$510 per share, with opinions covering the full market spectrum. With trading revenues still exposed to swings in crypto volumes, these differences reflect just how uncertain future performance may be, see what your peers are forecasting and why.