Coinbase Upgraded at JPMorgan, Seeing Potential $34B Opportunity in Base Token

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 appear more attractive compared to its peers.

The shares were about 4% higher in early trading, around $332.

The bank highlighted two key catalysts: a potential Base token and enhanced USDC payouts.

JPMorgan analysts said that Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, which has grown into one of the largest in the ecosystem.

A token could allow 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 accruing to Coinbase. The move, JPMorgan said, could spur development, community participation and long-term infrastructure growth.

The bank’s analysts also noted Coinbase’s efforts to better monetize USDC by offering yields to customers through its Coinbase One subscription service. By segmenting users and offering 4% returns to subscribers, Coinbase could add about $1 per share in annual earnings, JPMorgan said.

While competition from decentralized exchanges (DEXs) remains a risk, the analysts said market share between DEXs and centralized exchanges has stabilized. It added that Coinbase’s integrated model, spanning brokerage, market making, exchange and custody, should help sustain profitability even if fees decline.

JPMorgan valued Coinbase at 50 times projected 2027 earnings, factoring in $4 billion from a potential Base token, and set a December 2026 price target of $404.

Read more: Coinbase Opens Amex Card With Up to 4% Back in BTC for U.S. Coinbase One Members