Key Points
Coinbase’s stock has plummeted over the past year.
The chilly crypto market is throttling its near-term growth.
It will continue to expand as the crypto market warms up again.
Coinbase's (NASDAQ: COIN) stock has declined nearly 40% over the past 12 months. The largest cryptocurrency exchange in the U.S. lost its luster as the top tokens struggled to attract new investors. But at $176, Coinbase looks reasonably valued at 25 times next year's earnings -- and I believe it could be a great buying opportunity for long-term investors.
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Why will Coinbase keep growing?
From 2020 to 2024, Coinbase's annual revenue rose more than fivefold to $6.6 billion, even though its growth was temporarily chilled by the "crypto winter" of 2022 to 2023. From 2024 to 2027, analysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 12% and 6%, respectively.
Coinbase ended the third quarter of 2025 with a whopping $300 billion in assets under custody. That's up from $220 billion at the end of 2024.
It's also benefiting from the rising use of stablecoins, which reduces its dependence on more volatile cryptocurrencies. To curb its reliance on retail trading fees, it's rolling out more subscription, custody, staking, and institutional services. It's even expanding its own Layer-2 (L2) blockchain to support the development of more decentralized apps. Simply put, if you're bullish on cryptocurrencies and decentralized apps, it could be smart to accumulate Coinbase's stock as the bulls look the other way.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.