Bernstein analysts highlight Coinbase's strategic position to capitalize on Ethereum's 80% price surge since June 2025, which has driven record trading volumes and staking activity on the platform. Ethereum's rally to multi-year highs has increased investor engagement, with Coinbase benefiting directly through:
1. Elevated trading fees from heightened ETH transactions.
2. Appreciation of Coinbase's $590 million ETH holdings, bolstering its balance sheet.
3. ETH-denominated fee revenue growth as Ethereum's value climbs.
Concurrently, the onset of an altcoin season is expanding trading beyond Bitcoin and Ethereum. Coinbase's extensive altcoin listings position it to capture this diversification trend, reducing reliance on Bitcoin-dominated volumes. The exchange's user-friendly staking services—particularly for Ethereum—further lock in user engagement and generate recurring revenue.
Bernstein maintains an 'outperform' rating with a $510 price target, citing Coinbase's Base Network growth as a key ecosystem strength. However, analysts caution that crypto market volatility and regulatory shifts remain persistent challenges.