Coinbase (COIN) Predicted to Reach $252 Amid Rising Institutional Adoption

Benchmark has projected Coinbase’s stock to reach $252, attributing this potential surge to increased institutional demand amid forthcoming regulatory clarity in the U.S. With a dominant market share of 66%, Coinbase’s comprehensive services are poised to attract more institutional investors, particularly as stablecoin legislation advances.

Benchmark has initiated coverage of Coinbase (COIN) with a buy rating and a price target of $252, citing strong institutional demand driven by enhanced regulatory clarity. According to Benchmark, Coinbase leads the industry with a 66% market share in the domestic crypto trading space, attributing its robust position to its wide range of products and services tailored for both retail and institutional investors.

In the report, analyst Mark Palmer noted that Coinbase’s share price, currently around $198, fell nearly 50% since December. However, he believes this decline does not accurately reflect the potential improvements in the cryptocurrency market, especially in relation to regulatory developments regarding stablecoins, a space in which Coinbase is actively involved through its USD Coin (USDC).

The recent advancements in legislation for stablecoins, following collaborative efforts between House and Senate committees, signal a potential uptick in institutional investment in cryptocurrencies. Palmer anticipates that as new digital asset laws are enacted, an influx of interest from institutional investors is likely.

Coinbase’s diversified offerings position it well to capitalise on these changes. The firm is expected to benefit from its growing non-trading subscription and service products, which will enhance its overall valuation as institutional participation in the crypto market increases in the near future.