JPMorgan Upgrades Coinbase to Overweight with $404 Target, Citing Base Token and USDC Growth

JPMorgan has upgraded Coinbase (COIN) from "neutral" to "overweight" and raised its price target to $404, driven by optimism around the Base blockchain and USDC monetization strategies. The bank's report, released to clients, triggered an immediate rally in Coinbase stock, which surged over 8% to approximately $349 in early trading. Analysts credited reduced competition risks from decentralized exchanges and Coinbase's diversified business model as key factors supporting the upgrade.

The potential launch of a Base token represents a transformative opportunity, with JPMorgan projecting it could achieve a market capitalization between $12 billion and $34 billion, of which up to $12 billion may directly benefit Coinbase. Base, launched in 2023, has rapidly grown into a leading Layer-2 platform, processing over 60 million transactions per month and fostering developer activity within the Ethereum ecosystem. Jesse Pollak, creator of Base, emphasized ongoing exploration, stating, "We're at the beginning of exploring what a Base token could look like—how it could align our community, provide governance, and help us build toward a global onchain economy."

Beyond the Base token, JPMorgan highlighted Coinbase's efforts to monetize USDC through its Coinbase One subscription service, which offers around 4% annual yields on USDC holdings. This initiative is estimated to contribute roughly $1 per share in annual profit, diversifying revenue streams away from volatile trading fees. The bank applied a 50x multiple on projected 2027 earnings, incorporating $4 billion in potential value from Base-related initiatives, underscoring confidence in Coinbase's infrastructure innovation and long-term growth.