JPMorgan Lifts Coinbase to Overweight, Sees $34B Potential in Base Token
JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral”, raising its price target from $342 to $404, citing new monetization opportunities and lower risk that make the crypto exchange more appealing than peers.
In early trading, Coinbase shares climbed about 4% to $332.
The upgrade highlights two key growth drivers: a potential Base token and enhanced USDC yield offerings.
Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, now one of the largest in the ecosystem. JPMorgan estimates that a Base token could achieve a $12–$34 billion market cap, with up to $12 billion in value accruing to Coinbase. The bank said the token could boost development, user participation, and long-term infrastructure growth.
Additionally, Coinbase aims to better monetize USDC through its Coinbase One subscription service. Offering 4% yields to segmented users could add about $1 per share in annual earnings, according to JPMorgan.
While decentralized exchanges (DEXs) remain competitive, JPMorgan noted that market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model—covering brokerage, market making, exchange, and custody—supports continued 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.
