Loading cryptocurrency prices...

$34 Billion Base Token and Declining DEX Risk May Lift Coinbase Shares – DL News

Coinbase's Base Blockchain Poised for New Token Launch Worth up to $34 Billion, Potential 14% Stock Rise by 2026

  • A new token for Coinbase’s Base Blockchain could be valued up to $34 billion.
  • Coinbase stock may rise 14% to $404 per share by December 2026 due to this and other factors.
  • The Base blockchain supports a $5 billion decentralized finance (DeFi) ecosystem, the largest among Ethereum layer 2 blockchains.
  • Coinbase might increase earnings by limiting reward yields to premium Coinbase One users, similar to Robinhood’s Gold program.
  • Decentralized exchanges (DEXes) pose a diminishing threat as Coinbase plans deeper DEX integration through Base, expanding asset availability on its app.

Coinbase’s Base blockchain could see the introduction of a new token valued between $12 billion and $34 billion, according to JPMorgan analysts. This development, along with shifts in user reward strategies and the reduced impact of decentralized exchanges, could boost Coinbase stock price to $404 by December 2026, a 14% increase.

- Advertisement -

Base is a layer 2 blockchain developed by Coinbase, Hosting the sixth-largest decentralized finance (DeFi) ecosystem valued at $5 billion. It is the biggest among Ethereum’s layer 2 blockchains, per data from DefiLlama. Earlier, Coinbase had stated there would be no native token for Base but has recently reconsidered.

The analysts estimate that if Coinbase retains 40% of the Base token supply, it could represent between $4 billion and $12 billion in value for the company. Additionally, Coinbase might enhance its profit by reducing rewards for most users, focusing instead on Coinbase One subscribers. “Eliminating yield for all but Coinbase One customers could boost earnings by $347 per year, or $1 per share,” according to the analysts.

Decentralized exchanges (DEXes) have seen slowed growth but remain important. Coinbase plans to integrate DEXs into its mobile app, allowing users to trade many more crypto assets than the current selection of hundreds. In June, Coinbase announced this push, enabling decentralized crypto exchange trading through its platform.

Max Branzburg, head of consumer and business products at Coinbase, said at a company event, “Coinbase will be going from one asset 13 years ago in Bitcoin to hundreds of assets today to soon having every asset onchain available to trade in the Coinbase app by default.” JPMorgan expects Coinbase to generate revenue from sequencer fees related to DEX access on Base.

- Advertisement -

Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can reach him at aleks@dlnews.com.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Cardano Drops 20% in 30 Days, What Could Trigger ADA’s Recovery?

Cardano ADA's price has dropped about 20% in the past month, currently trading near...

Valthos Raises $30M to Use AI for Rapid Biodefense Response

Valthos launched with $30 million in funding from the OpenAI Startup Fund, Lux Capital,...

Bitcoin Treasury Firms Trade Below Asset Value Amid Market Slump

Many Bitcoin treasury companies are now trading below the value of their bitcoin holdings,...

BRICS Payment Network Enables Transactions in 185 Nations

China's Cross-Border Interbank Payments System (CIPS) supports yuan transactions in 185 countries.As of 2023,...

Code as Law Falters Amid Hack Risks and Legal Challenges

A documentary titled Code is Law focuses on major crypto hacks and the challenges...
- Advertisement -

Must Read

9 Best Books On Ethereum And Blockchain Technology

QUICK LINKSHow to Choose Your First Blockchain Book: A Simple Framework1. Define Your Goal: Are you looking to Build, Invest, or Understand?2. Assess Your...