Coinbase Global Inc. (NASDAQ: COIN) saw its stock surge more than 9% on Friday after JPMorgan Chase raised its rating and price target, signaling renewed optimism around the crypto exchange’s emerging revenue drivers — notably its Base layer-2 blockchain and the evolving USDC rewards model.
The upgrade to “Overweight” from “Neutral” comes with a new price target of $404 per share, reflecting roughly 15% upside from current trading levels. JPMorgan analysts said Coinbase’s strategic positioning around on-chain products and subscription-based offerings could unlock billions in untapped value.
Base Network Becomes a Core Revenue Driver
According to JPMorgan’s report, Coinbase is “leaning in” on Base, its Ethereum layer-2 network that has quickly become one of the most active blockchain ecosystems. Analysts estimate that if a Base token were introduced, it could represent a $12 billion to $34 billion market opportunity, with Coinbase potentially capturing up to $12 billion in retained value.
The note suggested that any future token distribution would likely favor developers, validators, and community members to ensure decentralization — while still offering Coinbase a significant platform advantage. The firm said this expansion marks Coinbase’s evolution from a traditional exchange to a broader blockchain infrastructure company.
USDC Rewards Overhaul Could Boost Profits
JPMorgan also highlighted Coinbase’s plan to optimize its USDC yield structure, an adjustment that could meaningfully improve margins. The exchange may soon limit full USDC interest payouts to Coinbase One subscribers, its premium membership service, while scaling back rewards for standard users.
If implemented, the change could add an estimated $374 million annually in incremental earnings at current yield levels. This move signals a shift toward recurring revenue models rather than purely transactional fees — aligning with broader trends in fintech and digital banking.
Stock Rally and Investor Confidence Surge
Following the report, Coinbase’s shares jumped to around $353, extending their year-to-date gains to roughly 42% and lifting the company’s market cap to over $90 billion. Investors responded positively to the combination of clearer regulatory momentum in the U.S. and JPMorgan’s bullish outlook on Coinbase’s diversified income streams.
The surge also underscores growing institutional confidence in the exchange’s ability to weather crypto market cycles while positioning itself as a long-term infrastructure leader in the blockchain economy.
Eyes on Q3 Earnings and Regulatory Tailwinds
All eyes now turn to Coinbase’s upcoming third-quarter earnings report on Oct. 30, where analysts expect $1.06 in EPS — up 71% year-over-year — on revenues of $1.74 billion, a 44% increase. Much of the growth is expected to come from its subscriptions and services segment, projected to contribute between $665 million and $745 million for the quarter.
Recent legislative progress — including the GENIUS Act for stablecoin oversight and a pending U.S. crypto market structure bill — is also providing fresh optimism for compliance clarity and mainstream crypto integration. Together, these factors could define Coinbase’s next growth phase and sustain investor momentum into 2026.