Oppenheimer Predicts Coinbase Will Gain from Increasing Adoption of Blockchain Technology

Coinbase (COIN) has been forecasted by broker Oppenheimer to benefit greatly from the long-term adoption of blockchain technology, according to a research report released on Wednesday. The report predicts that Coinbase’s trading volume in the first quarter of 2024 could see an increase of 95% quarter-on-quarter and 107% year-on-year, reaching $300 billion.

Analysts Owen Lau and Guru Sidaarth believe that the growth of digital assets will continue following the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in January. Additionally, they noted the significant increase in liquidity in the space, with USDC’s average market cap growing to $31 billion by the end of the first quarter of 2024. USDC is a stablecoin issued by Circle, which is backed by Coinbase and earns gross interest income on USDC outstanding balances.

Oppenheimer raised its price target for Coinbase stock from $200 to $276 based on this positive outlook for the company. As of publication time, shares were trading at $258, up 2.5%. While analysts remain optimistic about blockchain technology’s long-term adoption, they also warn about potential near-term volatility due to risks such as a low probability of approval for a spot ether (ETH) ETF that was previously expected in May.

By Riley Johnson

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