Is Coinbase (COIN) Stock Poised for Higher Highs?

Many positive catalysts have pushed Coinbase COIN stock higher, which hit a new 52-week high of $369 a share on Wednesday.

The leading crypto exchange operator has seen its stock soar more than +40% this year and is now sitting on staggering gains of over +500% in the last three years.

Considering such, let’s take a look at whether now is still a good time to hold or buy Coinbase stock for higher highs or if it’s time to take profits in COIN.

Innovative Products & Crypto Bullishness

The acceptance and expansion of cryptocurrencies that are pegged to a more stable asset (stablecoins), such as traditional currencies and gold, are expected to be a major growth engine for Coinbase. To that point, Coinbase receives 50% of the revenue from the USDC coin, which it co-founded with Circle Internet Group CRCL and is tied to the U.S. dollar.

Further fueling investor enthusiasm, Coinbase has made a serious push into mainstream financial services after recently announcing the launch of a stablecoin-powered merchant payment system to rival Visa V and Mastercard MA. Additionally, Coinbase is rolling out a crypto rewards credit card in a partnership with American Express AXP. Earlier this month, Coinbase also announced a new stablecoin-based platform integrated with Shopify SHOP, designed to streamline global e-commerce transactions using USDC, making crypto payments more accessible for merchants and customers.

Lifting Coinbase’s trading volumes, the continued rebound in Bitcoin has been a further catalyst. The price of Bitcoin is up +15% year to date and has spiked more than +70% in the last year to just over $107,000. The rebound has been driven by macroeconomic shifts that have led to higher institutional inflows, along with favorable supply and demand dynamics following a post-halving in 2024 that reduced the new creation of Bitcoin by 50%.

Regulatory Wins & Analyst Upgrades

GENIUS Act: Passed by the U.S. Senate, the GENIUS Act provides a clear framework for stablecoin regulation, boosting Circle’s business model as the issuer of USDC, and benefiting Coinbase as well, since they share the revenue.

MiCA License: Coinbase has become the first U.S.-based crypto exchange operator to receive a Market in Crypto Assets (MiCA) license under the European Union’s new regulatory framework and is establishing a European hub in Luxembourg to expand internationally.

Correlating with lucrative legislative approvals, many analysts have started to upgrade Coinbase stock, with it noteworthy that COIN has blown past its current average Zacks Price Target of $275 a share. Notably, analysts from Bernstein set a street-high price tag for COIN today at $510, citing strong momentum from stablecoin revenue, institutional adoption, and Coinbase’s expanding role in crypto infrastructure.

Bottom Line

After such an exhilarating rally to new 52-week highs, Coinbase stock currently lands a Zacks Rank #3 (Hold). However, it wouldn’t be surprising if a buy rating is on the way and perhaps higher highs, as earnings estimates for Coinbase are likely to rise in correlation with analysts upgrading their price targets for COIN.   

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This article originally published on Zacks Investment Research (zacks.com).

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